The strong US Dollar is one reason for the decline in commodity prices and it is just a matter of time before it head the other way towards weakness. Every currency has its heyday before a decline. The British pound and the Aussie dollar were super strong no that long ago and now they (especially the Aussie) considered weaklings compared to the dollar.
You can try to profit from this inevitable decline of the dollar by owning gold or silver or some other currency. In order to see any real gains you have wait a long time or use a huge amount of leverage. If you can handle a crazy idea you can short the dollar by going long on a casino stock, without leverage.
Both LVS and WYNN have suffered big declines recently most due to a strong dollar and weakness in China/Macau. If you look at their 10 year charts you see that these stocks respond really well to a weak dollar with gains of 10x, 20x, and more. Now is not the time to buy either due to end-of-year tax-loss selling or just selling off of the losers. But if the dollar starts to weaken or China starts to improve then these casino stocks will start to move higher.
The blogosphere says that gold mining stocks are the best way to profit from a weakening dollar but I think that when push comes to shove more people will want to visit a glamorous casino before a dirty mine. They would rather plunk down a couple hundred dollars on a Vegas show before a 1/4 ounce of gold. Take look at LVS and WYNN over the last 10 years. If you did not know it you would think they were the charts of biotech stocks the way they boom and bust in price.
You can try to profit from this inevitable decline of the dollar by owning gold or silver or some other currency. In order to see any real gains you have wait a long time or use a huge amount of leverage. If you can handle a crazy idea you can short the dollar by going long on a casino stock, without leverage.
Both LVS and WYNN have suffered big declines recently most due to a strong dollar and weakness in China/Macau. If you look at their 10 year charts you see that these stocks respond really well to a weak dollar with gains of 10x, 20x, and more. Now is not the time to buy either due to end-of-year tax-loss selling or just selling off of the losers. But if the dollar starts to weaken or China starts to improve then these casino stocks will start to move higher.
The blogosphere says that gold mining stocks are the best way to profit from a weakening dollar but I think that when push comes to shove more people will want to visit a glamorous casino before a dirty mine. They would rather plunk down a couple hundred dollars on a Vegas show before a 1/4 ounce of gold. Take look at LVS and WYNN over the last 10 years. If you did not know it you would think they were the charts of biotech stocks the way they boom and bust in price.