Citadel’s Ken Griffen issued a warning to investors about the U.S. dollar (DXY) (UUP). He said that asset inflation away from the dollar is substantial. People are looking to either de-dollarize or de-risk their portfolios against U.S. sovereign risk.
Griffen said that investors started to prefer gold as a safer asset. In the last few weeks, however, the USD strengthened. The USD Index Bullish Fund ETF (UUP) bottomed at $26.81 in the summer and closed at $27.89. It gained 0.85% in the last five days.
Gold traded at an all-time high last week.
Paul Tudor Jones compared today’s stock market all-time highs to feeling like it is 1999. Jones is the founder of Tudor Investment Corporation and foundation founder and board member of Robinhood (HOOD).
Jones said that stock markets offer opportunities against a cautious backdrop. He conceded that markets offer potential gains ahead, but a “really bad end to it” awaits. Jones adjusted today’s markets to leveraged ETFs, plus margin debt. When those are included, valuations are higher than the dot-com bubble in 1999-2000.
Jones picked gold (GLD), Bitcoin (BTC-USD), and “meme stocks” as sectors offering huge growth. Unfortunately, last week, BTC prices fell by 9.13%, closing at $110,321 over the weekend. Bitcoin did not act as a safe haven for the trade tariff war. When China escalated the trade war, the U.S. President responded. That pressured BTC prices.
Ray Dalio sounded the warning on the U.S. government debt. He said that it was analogous to the years that led to World War II. In the last month, the TLT ETF gained 0.31% and is up by 5.85% in the quarter.
