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Shaffer Management CEO: Long The Dollar Over Euro

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    Shaffer Management CEO Dan Shaffer gives his outlook for the markets.

  • Duration 3:59
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-- with the trade from today thank you -- and did your happily long the dollar.

First is the euros I'm curious.

What -- -- -- clients right now if if you're long the dollar is it is -- safety safety safety for next couple months or what.

Well it's really a longer term trade of being long the dollar against the basket of currencies with the index but also I like the Euro as a short right here -- as I spoke about before I just.

I just think this thing's gonna unravel where the early stages of the Euro.

Collapsing it could go to par I mean it really go back -- -- it was below par when it first started out in 1999.

But so that that's one of our trades you can take -- ETF short on -- The pro shares were looking at those the pressure from the market vector fellow shorting T yeah those -- -- actually got a higher risk but you know as a trade it might be something that can you can carry into next year that's something that I like and the economies in Europe which is gonna go down at it and you know kind of said this before that.

There's a shortage of US dollars in the world debt is defaulting all over the world in US dollars when debt defaults those dollars are gone.

So they're actually could create a shortage would people be looking for dollars so that dollar index is about 7778.

Now.

I think the index is gonna go above eighty maybe hit ninety which means the baskets of stocks are gonna be the baskets of currencies are gonna weakened against the US dollar and -- been watching that.

OK so I can profit from the fall in Europe.

How like -- but but what -- Treasuries US treasury I love US treasuries I've been talking about this for years.

I think that the US treasury he.

But right now we don't have that people -- parking money they're getting no interest in the treasuries in the short term.

On the long term I think that we have a nice rally coming into December.

On the US treasuries were little we lower yields.

Like treasuries but you also like a lot of the discount retail names that we heard from faces today -- the -- that we are watching today -- -- concerned about -- prices but also.

Some of the major discount names like.

Dollar stores I mean big lots you are actually -- spending in what that tells me we're still -- where they kind gonna be down from a year to.

-- until I mean you could -- shovels several more years than that because we're in these deflationary cycle in people don't have money.

And it's building on itself the gonna go to these small stores the Family Dollar.

The other big lots to go to look for -- is -- -- -- -- -- stuff.

For the house in the stores have -- they're priced right and their position for.

I analysts tonight -- in fact I think people are gonna do a lot of online shopping this year discount on -- shopping yeah and that's really gonna hurt the retail brick and mortar.

-- but people still but with these kind this.

Stocks that I'm talking about the people wanna -- touch things they wanted to people still wanna go out -- it's sort of go to the mall the gonna go to the family to -- look around this thousands of items.

What I know I just got a release from -- this morning are actually opening up three new stores so you mean.

What do well you're gonna get -- -- second like.

-- a a large -- -- now.

You don't Macy's is a great company that great company and the in the pricing is very good I was in when the other day.

But I'll talk about when we go it's that real -- early stages of this deflationary depression that I see coming.

And if we're in the early stages -- where we are now.

Imagine what's gonna be like a year from now member inspecting the stock market the equity market to make its low around 2013.

To fourteen.

Substantially lower than where it is now where people didn't go to gonna go to low lower -- some Macy's -- position.

That they can stop a -- drop prices even further write that you know on this issue there's two types of content as the content its trade that is the higher level cotton.

The high level hot is very costly and that cutting in right now.

Well I don't why -- -- I you know.

Hi Al sharp objects in the in the next six months and you're very bearish but actually -- -- a million you've been this bearish and not enough supply should start in 2000 the.

That I was bearish and in the markets came down that we had this this.

Yeah I can't we have is that the data for global -- not -- -- we have one more wave down in this cycle and shape or ladies and gentlemen I you know like he's that is 2008 to now are right.

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