The market finally appears to be taking the pick up in the US economy, and therefore the US dollar, seriously. But with a lot of geopolitical risks on the table, who knows what will happen next.
We anticipate our call on Aussie dollar sensitive stocks will start to show fruit soon and any dip could provide opportunities to buy good stocks cheap.
Peter Switzer has pointed out that market laggard QBE would indeed do well if the dollar fell and last week it was up by 4%. It’s not necessarily on our shortlist though. SSR expert Paul Rickard gave up on it a few months ago and Peter points out that it’s still for the thrill seekers. But stay tuned, he is also trying to get the CEO Colin Fagen on Switzer TV to find out what’s really going on.