From the Kobeissi Letter:
This is incredible.
A net 31% of institutional investors are underweight the US Dollar, the most in 20 years, per Bank of America.
This has declined by ~52 percentage points over the last 5 months.
Furthermore, asset managers and leveraged funds’ net positioning on the US Dollar has fallen to near its lowest in 3 years.
As a result, the US Dollar index has declined 9% year-to-date, marking its worst performance this century.
This puts the US Dollar now on track for its biggest drop in the first half of the year since 1986.
The US Dollar is historically unpopular right now.
Conclusion
A bearish outlook for the dollar is bullish for gold.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.