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IPFS News Link • Economy - Economics USA

Eric Peters: "This Is How You'll Know The Cycle Is About To Turn"

•, by Tyler Durden

Yesterday, we showed that according to Macquarie strategist Viktor Shvets, the biggest danger facing investors in the next 12 months is a sudden, explosive move higher in the dollar, as a result of a quiet shrinkage in global dollar supply and an inability of the US to materially widen its current account deficit, which could precipitate a violent dollar short squeeze, which in turn would result in a sharp, deflationary hit on global asset prices.

24 hours later, we share a somewhat different perspective, this time from One River CIO Eric Peters, whose rationale for why an explosion in dollar vol is imminent we presented earlier; Peters - like Shvets - believes that the dollar is the definitive inflection point catalyst, or perhaps indicator, however unlike Shvets, Peters is more concerned with the dollar losing value over the medium-term as foreign pull capital out of the US - the catalyst for the next downcycle -  rather than a surge in the USD higher as dollar shorts are hit with a barrage of margin calls.