Wednesday, November 30, 2016

US Dollar is overbought and overvalued

The US market is not quite as strong as the indices would suggest because CNBC said the other day, 90 percent of the S&P gain since December 2014 came from Facebook, Google, Amazon, Netflix. There has been a lot of selling in the emerging economies stocks since 2011. This year most emerging economies have outperformed the US.

I think that in 2017 my recommendation would be to overweight emerging economies, and I would also overweight Europe, partly because I think that the sentiment about the U.S. dollar is far too optimistic. I think the dollar is terribly overbought and overvalued, so I wouldn't get into the U.S. dollar at this time.

Watch the video below for full interview