alexis 5.0 3 ideas

The DXY was down roughly 10% last year, and Alexis forecasts another 10% decline this year. The US is facing an affordability crisis, and despite the "safe haven" status during conflict, the structural trend is lower. Investors may look to alternatives like the Swiss Franc or Yen (though Yen has fiscal issues) or hard assets. SHORT the US Dollar Index on structural weakness. A major geopolitical escalation usually triggers a "flight to safety" into the USD, temporarily reversing the structural downtrend.

Healthcare costs in the US are forecast to increase by 8% to 10% this year. While rent and goods inflation softens, services inflation (specifically healthcare) is sticky and rising. Companies in this sector have pricing power and are capturing this inflation as revenue. LONG Healthcare providers/insurers who can pass on these 8-10% cost increases. Regulatory intervention or government price caps on drugs/services.

Foreign investors bought the most Japanese stocks/futures in a decade following the Prime Minister's election win ($11.5 billion in a week). The market is pricing in political stability and fiscal stimulus (spending). Despite the currency issues, the equity market is benefiting from a "reflationary" mindset and corporate governance reforms. LONG Japanese Equities (Nikkei/Topix) to follow the "smart money" foreign flows. The BOJ (Bank of Japan) is under pressure to raise rates to defend the Yen; tightening into a debt-heavy economy could crash the market.