Why Bitcoin Can't Replace the US Dollar (Fiat) Bitcoin Vs Dollar Over Time

Why Bitcoin Can't Replace the US Dollar (Fiat)

U.S. trade deficit hits widest point in five months

‘Buy here… sell here’: This chart says commodities have never been this cheap vs. stocks

“Buy here… sell here… it’s that simple.”

Those aren’t just famous last words, they are also what the Daily Reckoning blog’s Jody Chutley used to describe this chart:

The chart compares the valuation of the S&P Goldman Sachs Commodity Index (GSCI) with the S&P 500

and it’s telling us that commodities have never been this inexpensive relative to the broader market.

“Historically, any time the ratio has gotten this low, the commodity index has bounced back very sharply,” he wrote, adding that where the ratio currently sits is reminiscent of the dot-com bubble... right before it burst.

So what’s the play if that ratio starts to climb, as Chudley expects? He said the answer lies in the composition of the GSCI, which is made up of a diversified basket of 24 different commodities, including energy products, industrial metals, agricultural products, livestock products and two precious metals. The weighting of each commodity shifts each year, energy takes up almost 60%. Bitcoin Vs Dollar Over Time , energy takes up almost 60%.

“While I have no doubt that almost all of these commodities are worthy of closer inspection, I can’t help but point out the fact that this screaming buy signal is more narrowly screaming, BUY ENERGY,” he wrote in

Chudley says that a “significant risk” of a top in the market should have investors hesitant about buying into popular momentum stocks like Amazon

 , Bitcoin Vs Dollar Over Time

 , Microsoft

 and Netflix

 ,










  Bitcoin Vs Dollar Over Time

“There are opportunities outside of these big expensive companies,” he said. “Energy and commodities in general definitely fit that bill.”

including the iShares S&P GSCI Commodity-Indexed Trust












Bitcoin Vs Dollar Over Time , including the iShares S&P GSCI Commodity-Indexed Trust

 .But for a more focused play, Chudley suggests investors take a look at a“very much off-the-radar” oil

producer from Canada, Cardinal Energy

“With a sensible balance sheet and juicy yield, Cardinal Energy would be a good start towards positioning your portfolio to take advantage of the current opportunity that the GSCI chart is screaming about,” he wrote.

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

Now would be the time for Apple to buy Tesla, and kick Musk out of the driver’s seat

How to potentially become a marijuana millionaire, albeit carefully

The Dow just busted out of its longest stint in correction territory in nearly 60 years