Open: London Session | Forex, Metals, Oil, Agriculture December 22, 2020



Dollar indexThe dollar index, after opening the session marginally lower, rallied strongly to mark an intraday high of 91.02. With GAAP earnings power just above the dollar mark, or perhaps around $1.20 per share, valuations are very steep. Needless to say, valuations were high at $60 in terms of the earnings multiple, with earnings coming in around the dollar mark. I have seen numerous projections for potential revenue if approved, with Morgan Stanley (MS) chiming in with a 2-billion-dollar figure.


Beyond next year, he also sees gold prices heading higher, with an acceleration in price gains in the 2023 to 2025 timeframe. Iron ore, the main ingredient in steel, is one of the world’s most-traded commodities and is among the best performing assets of 2020. Shipments from that country—the second biggest exporter of iron ore, after Australia—have yet to fully recover from earlier waste-dam collapses and pandemic-related disruptions to port and rail facilities.
For 2021, they expect gold to be up another 10 percent on an annual average basis, Christian stated.


The average crude oil price recovery has accelerated (22% rise) in Q4 so far after remaining steady in Q3. In the short-to-medium-term, CHX’s management is optimistic about its outlook on the crude oil price. Oil slumped and there was even an impact in the monkfish market. So, the stock has underperformed the VanEck Vectors Oil Services ETF (OIH) in the past year. Brent hit nine-month highs of $52.26 on Friday, after gaining 40% over seven weeks.

United States

The company is the leading distributor of natural, organic, specialty, produce, conventional grocery, and retailer services with 55 food distribution centers all located within 85% of the US/Canadian population. The index is designed to capture a mix of the large, mid, and small-cap segments of the US equity universe. Therein lies the problem with Icahn Enterprises (NASDAQ:IEP), which holds equities that are beaten down when bought on their own, but expensive when bought through the Icahn portfolio.
To wrap up the conversation, Boockvar shared his thoughts on two specific stocks on his radar: CVS Health Corp. (NYSE:CVS) and Walgreens Boots Alliance Inc. (NASDAQ:WBA). Newell (NASDAQ:NWL) might become an interesting play, but again it depends on successful activist moves. He said there’s a belief that Amazon (NASDAQ:AMZN) will kill them, but he couldn’t disagree more. He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.
I was drawn to the remarkable Helen of Troy Ltd. (NASDAQ: HELE) years ago. At one point, the NASDAQ was almost 20% above its pre-pandemic levels. Wall Street analysts’ estimates suggest a 14% upside.


The Brexit talks will help establish the prospects for a continuing rules-based order as globalization rolls back.