dxy still can drop another leg in short term trades , but i don't think it will continue to much lower levels in 2021. when the equity markets goes for correction (up %40 can be expected) , DXY can spike up over 100 again.
@VulcanoRosso, Thanks. As for the investing side, is it best to start taking profits and pivoting to gold/silver?
RPM3231342
⋅
@Lionhead,
Gold/silver. Possibly, not a bad hedge against future inflation long term, but we aren't at that point yet, and it may take years. As the dollar rallies, gold and silver will likely loose value. As the dollar rises, equities, asset prices, and CPI should also drop. If this plays out, it means the Fed will be forced to continue to lower interest rates in order to stave off deflation. There is even potential they will be forced into negative rates, as it has been done in many countries many times before. This to me says that the most undervalued asset at this time is treasury bonds. TLT or ZROZ are great ETF's that would be highly profitable during a period of decreasing interest rates. TMF is a triple leveraged fund in treasuries for higher risk/reward if this scenario plays out.