Oil, gold or the US dollar? Three experts — Jerry Castellini, president and CIO of CastleArk Management; Brian Dolan, chief currency strategist at Forex.com; and Matt Zeman, trader at LaSalle Futures Group — offered CNBC their investment advice.
“The dollar is catching a lot of heat these days," Dolan said.
"But it’s weakened to a point now that it’s reached politically sensitive levels, and we’re seeing interventions by multiple Asian central banks attempting to prevent their own currencies from strengthening further and attempting to support the dollar,” Dolan told CNBC.
Dolan suggested buying the dollar/yen and the dollar while selling the British pound .
Meanwhile, Zeman said a short-term bounce in the dollar is “highly likely,” but there will be an overall dollar weakness for some time to come.
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“That will be a huge positive for gold,” Zeman said.
“Perhaps the U.S. is not the end-all, be-all economic powerhouse that we used to be. You see talk of taking oil trading out of dollar and other hard assets out of dollar and into euro and other currencies.”
Zeman told investors to buygold in other currencies “and [don’t] chase the market at these levels,” saying there will be some pullback in the future that will provide better entry points.
In the meantime, Castellini said oil trade is the way to go.
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“If India, China and the rest of the world economies are going to grow, there’s one problem: there isn’t enough oil out there to fire those economies up over the next five years,” he said. “Of all the places you could put money, oil seems to be the one place that we have the greatest need.”
Castellini advised investors to focus on either international or domestic based growing oil and gas companies.
No immediate information was available for Castellini, Dolan or Zeman.