During this phase, stocks, as represented by the S&P 500 ETF (SPY), the euro, as represented in the Euro ETF (FXE), commodities, and commodity currencies such as Australian dollar, as seen in the Australian Dollar ETF (FXA), will be under downward pressure.
The U.S. dollar, as represented by the U.S. Dollar Index ETF (UUP), and bonds will be under upward pressure.
Gold in terms of the U.S. dollar may go up or down, but in terms of the euro will likely go up. I continue to think gold, as seen in the Gold ETF (GLD), as having the best risk/reward ratio in this environment.
Timing will be impossible to predict unless you have reliable inside info from the euro-zone political inner circle, and from many sides. Such is life in a market completely dependent on politics.
At the time of publication the author had holdings in gold.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV