Wright said he is getting ready to buy the dollar and thinks it’s going to be a multi-month trade.
“The stock market is simply out of fuel,” he said. “It’s the same enthusiasm and bubble atmosphere in the summer and fall of 2007. [I expect] equities to be negative in 2010.”
In the meantime, Munson told investors that it is time to raise cash.
“We took money off of Brazil, some of our shipping position we’ve sold today,” he said. “We went long on a lot of Treasurys and we’re looking to sell any rips in gold.”
Munson said he expects to see continued weakness in the dollar long-term.
“Everybody seems to be looking at gold as being diverged from the dollar as a trade,” he said. “Once people realize the dollar is going to bounce, you’re going to shake off the gold bugs and the dollar will continue its longer trend down.”
Going forward, Munson said the markets will trade sideways.
“Gold will outperform the S&P 500 and if you could find the right patches in commodities, then you can make some money on things like Freeport McMoRan and some of the commodity trades,” he said.
“We’ve had a month where the market has not made new highs. There’s nothing there. So I think we can see a bottom within the next week and I’m looking for more downside."
"I'm...short in my investments,” Munson said.
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No immediate information was available for Munson or Wright.