Bitcoin Is A Speculative Asset, A Bubble

I don't think something like Bitcoin is ever going to succeed at being money. It's not going to be used as a medium of exchange as a store of value but what it is now is a speculative asset. People are buying it, it's appreciating and the people that own it on paper are making money and some of them are actually cashing out and making real money but the majority of the paper wealth that's been accumulated is still sitting there. But you do have people that are coming in and buying at these high prices. Ultimately the bubble is going to pop and the things are going to come crashing down, the question is how much bigger is this bubble going to get? Have we already seen the peak or is this going to be the biggest bubble of all time?

The U.S. Dollar Index May Drop To 60

The U.S. Dollar Index closed at a new low for the year solidly below 97.00.  We closed at 96.67, I think the key level is 92 which is the low from May of last year but once we break through that and I think there'll be some support around that level, but once we break through 92 we're making room for 80 and that is a pretty big drop. I think that can happen in a short period of time. 

Probably, of course, 80.00 is not the bottom because 70 was the low in summer of 2008 but then you know the dollar got Saved by the Bell by the financial crisis. Ain't going to happen again the next crisis is the US Dollar so we're going to take out 70.00, we're going to go to 60.00 and then we are below 60.00 I think is when we're going to have a crisis. Now who knows where gold is going to be by then, I think gold (SPDR Gold Trust ETF (GLD)) is going to be much much higher.

The Trump Trade Unraveled A Bit

The Trump trade unraveled a bit. Remember early in the Trump trade you had a strong dollar the US Dollar has surrendered a hundred percent of its gains post Trump's election and so year-to-date even though the S&P 500 Index is up, priced in gold the S&P 500 Index is actually down. And if you compare the US stock market to other stock markets around the world the US stock market is one of the worst performing markets in the world so it doesn't sound like the Trump trade is working it sounds like the trades that are working are buying gold and buying foreign stocks. (SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY), iShares MSCI Emerging Markets Index ETF (EEM))