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| By Jim Nelson |
This week, your editors focused on two seemingly polar opposite forecasts.
First, the dollar is in serious trouble.
Nilus Mattive kicked things off with why central banks have the “highest likelihood of upsetting the market’s apple cart.”
He writes:
“Euphoric markets require lots of easy-money fuel to keep going.
“So, risk-on assets are extremely sensitive to any policy missteps or unanticipated actions.
“We should also keep in mind that many other central banks continue to diversify away from U.S. dollars and dollar-denominated assets.”
Our Crypto Managing Editor Beth Canova is tracking a different threat to the dollar.
She says that “China’s Latest Move Could Send the Dollar Spiraling.”
You see, the country — for the first time — used digital yuan to settle a crude oil trade.
The U.S. dollar has been used for that purpose for decades.
This could encourage other central banks to finally launch and use their digital currencies.
Sean Brodrick gives us his prediction on what the investigation into Jerome Powell will mean for the Fed going forward.
You can guess it. Not good!
The main takeaway: “If the Fed loses independence, the dollar loses credibility.”
NOTE: On Tuesday, Sean will give three more predictions. And they could unlock a $22.3 trillion windfall opportunity for investors. Grab your spot here.
Does all this mean every dollar-denominated asset is set to collapse?
According to your other experts, absolutely not!
That’s the second focus of this week: tech.
Dawn Pennington reports that “Today’s Tech Supercycle Is Just Hitting Its Stride.”
There have been four historical tech supercycles over the past 150 years — some at times when the dollar was declining, like today.
That didn’t stop the companies best positioned in those supercycles from making life-changing gains.
We are now in the fifth tech supercycle. This time will be no different.
Speaking of tech and life-changing gains …
Michael A. Robinson also chimes in with his favorite way to play the tech arms race between the U.S. and China navies.
That’s it for this week.
The market is off on Monday for Martin Luther King Jr. Day.
So, if you haven’t grabbed your seat for the virtual supercycle event on Tuesday, Jan. 20, at 2 p.m. Eastern, do so now.
Have a great, long weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
