The Implications of the US Dollar Weakness

On a recent tweet, Peter Schiff highlights the recent moves in crude oil and gold and the implications of the US Dollar weakness going forward: 

"Gold closed above $1,300 an ounce for the 1st time in 5 years, oil closed above $60 per barrel for the 1st time in 4 years, and the U.S. dollar fell the most in 14 years. Interesting that no one is worried about what this implies for inflation or interest rates in 2018!"

Related: SPDR Gold Trust ETF (GLD), United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures

US Stock Market: This Never Happened Before In History

I think this is the first year that the Dow Jones Industrials Average (DJIA) has ever gained 5,000 points in a single year. In fact, the Dow Jones was up every month of 2017. That's never happened before in history.

In fact, we've gone 14 consecutive months without a decline and not only were we up every month but 2017 represented the lowest year ever of stock market volatility meaning that even though the market was going up it barely ever went down so it never made anybody nervous.

Related trading instruments: SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY)

Stock Market: Expensive, Complacency

The market has never been this expensive while at the same time so few people are worried that it might go down. (Select Sector Financial Select Sector SPDR ETF (XLF), Energy Select Sector SPDR ETF (XLE), SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ))