Strategist's 'Ron Paul' Trade: Avoid Stocks, Stay Long US Dollar

The dollar has been on the riseas yields on Treasury noteshave soared to record highs. Meanwhile, yields on the 30-year note are at their highest levels since May, so should you be "fighting the Fed"? Keith McCullough, CEO of Hedgeye Risk Management and CNBC contributor, discussed his insights.

“The next six weeks will be much more treacherous for stocks, but we think you can stay long the dollar,” McCullough told CNBC.

“So I do like fighting the Fed — both ahead and beyond the [Tuesday] Fed meeting — because Ron Paul will absolutely undress [Fed chairman Ben] Bernanke on the transparency part.”

McCullough said he expects the bond markets to continue weakening.

“From here, we’d also be a short-seller of U.S. equities,” he said.

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Scorecard—What He Said:

• McCullough's Previous Appearance on CNBC (Dec. 13, 2010)

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More Market Analysis:

• Stock Market 'Looking Good' for Next 2 Quarters: Pro
• Big Jump in Yields Seen as Good Thing...for Now
• Expect Stock Downside Move in Next 3 Months: Pro

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CNBC Slideshows:

• Disappearing Tax Cuts

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CNBC Data Pages:

• Dow 30 Stocks—In Real Time
• Oil, Gold, Natural Gas Prices Now
• Where's the US Dollar Today?

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CNBC's Companies in the News:

Boeing

Kraft

Johnson & Johnson

Caterpillar

Cisco

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Disclosures:

No immediate information was available for McCullough or his firm.

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Disclaimer