This week’s Alpha Trader podcast features hosts Aaron Task and Stephen Alpher chatting with Jim Iuorio, director at TJM Institutional Services and a CNBC contributor. Jim was previously on the show five weeks prior to the election suggesting investors get ready to hit the buy button on stocks (and sell button on volatility) the day after November 3. It was a pretty fair call, and after a bodacious November into mid-December rally, Iurio wouldn’t be surprised to see the averages take a breather headed into the end of the year.

The dollar (USDOLLAR) remains key to the outlook, says Iurio, noting its big decline of late, and big rallies dollar hedges like silver (XAGUSD:CUR), Bitcoin (BTC-USD), and the Swiss franc (FXF). Iurio isn’t in any way calling for a dollar collapse, but the chances of something along those lines are at least non-zero.
And speaking of Bitcoin, Iurio is bullish on the idea of owning it as a hedge against the fiscal and monetary sins of D.C., but worries about a big air pocket underneath the price should the politicians feel like taking the crypto down a couple of notches. For that reason, silver is his favorite holding to benefit from the decline in the dollar.
The show then turns to stocks, and Iurio is medium- to long-term bullish thanks to vaccines, the Fed at 0%, and fiscal stimulus. He suspects the conditions for an inflation in 2021 are in place, and will be looking to buy energy names after what may be some year-end tax-loss selling. Iurio is also long and enjoying the ride Tesla (TSLA), calling it the poster-child for the question, “Is there too much money out there.” The answer at the moment is “yes.”
There’s plenty more, including a discussion of the bizarre state of modern-day central banking, the U.S. (of all governments) recently designating the Swiss as a currency manipulator, and why Iurio thinks the financial sector names might be big winners in 2021.
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