U.S. Dollar: The Worst January in 20 Years!

Everybody on Wall Street started the year long the U.S. Dollar. Well, I just read that this was the worst January for the U.S. Dollar in almost 20 years! And for all the fanfare and hype about Dow 20,000 - I think the Dow Jones Industrials Index (DJIA) was up just half of a percent in the month of January. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

The Debt Bomb is About to Explode in the U.S.

The debt bomb is going to explode in the United States. Artificially low interest rates helped keeping U.S. debt and interest payments contained but it cannot be contained for much longer because long term interest rates and inflation are rising and on such a scenario creditors will keep demanding higher premiums. (iShares Barclays 20+ Year Treasury Bond ETF (TLT), ProShares UltraShort Lehman 20+ Year ETF (TBT), 10- year U.S. Treasuries, 30-year U.S. Government Bonds)

Forex: Commodity Currencies (AUD, CAD)

The Australian Dollar (AUD) has been trading even firmer than the Canadian Dollar (CAD). The Australian Dollar (AUD) bottomed out in January 2016, so commodities (Gold, Crude Oil) bottomed and commodity currencies also bottomed.