Philip Gotthelf, president and commodities analyst at Equidex and Nick Bennenbroek, head of currency strategy at Wells Fargo shared their best commodity and currency plays.
“It’s likely that some of these commodities have been overbooked because the demand side has weakened considerably,” Gotthelf told CNBC.
He said the recession is taking its toll on discretionary driving while the weather is taking its toll on the air-conditioning season, weakening overall demand for commodities.
Gotthelf said he is very bearish on oil and thinks we could see oil go back down to the $40s by mid-summer.
"If there is an outrageous inflation based on the printing of money, the commodity prices will respond higher, but the demand picture is not looking so good,” said Gotthelf.
In the meantime, Bennenbroek said regardless of the inflation and the Fed’s actions, he is bullish on the U.S. dollar.
“We think some of the inflation fears are overdone,” Bennenbroek said. “A reason why the dollar has fared badly is because of the loss of the safe-haven bids as equities have rallied ahead. The equity markets are due for some correction—which could be up to 10 percent. If you see that, then you’ll see a little bit of safe-haven return. The dollar will do well compared to other currencies in the next 3 months.”
Bennenbroek said once the markets see a 10 percent correction, investors should also consider looking into the Australian, New Zealand, Canadian and Brazilian currencies.
No immediate information was available for Gotthelf or Bennenbroek.
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