What started out as a mild-mannered back-and-forth between President Trump and Fed Chair Powell has deteriorated into an unruly game of name-calling and threats.

Mr. Too Late… Major loser…

It all makes for a stellar Washington melodrama. But in the bigger picture, their spat doesn’t move the needle.

Instead, the market is telling us everything we need to know.

This one chart is on the verge of triggering a new supercycle that will leave most investors out of touch and short on cash.

Follow its twists and turns, and you’ll be light years ahead of the average investor clinging to the past.

Spoiler alert: Commodities, emerging markets, and all those areas we’ve all conveniently ignored for the last decade are your future market leaders.

It all starts here.

Here’s what you need to know and how to prepare…

“Sell America”

There’s a new theme running rampant across the markets.

Traditional haven assets such as bonds and the U.S. dollar are falling at the same time as stocks.

The value-heavy Dow Jones Industrial Average is tracking toward its worst April performance in almost a hundred years (Great Depression-era numbers), and the technology sector’s slump is weighing down the Nasdaq and the S&P 500.

Meanwhile, the U.S. Dollar Index (DXY) hit a new three-year low yesterday while T-bonds couldn’t catch a bid.

They’re calling it the “sell America” trade.

Finding a viable area of the market to park money is becoming increasingly difficult for American investors. It doesn’t look like that’ll change anytime soon, regardless of potential rate cuts.

I admit, it’s nice to see Powell take a gutsy stand. But it’s always easy to do the right thing when the stakes are low.

The entire world knows Powell is operating on borrowed time, including the market.

As of this afternoon, fed fund futures are pricing in a 60% chance of a 25 basis point cut in June, with three additional cuts by the end of the year. That’s roughly where we were a month ago when Trump and Powell were still playing nice.

Nonetheless, the global investment community's appetite for U.S. assets has certainly changed.

The Chart That Says It All

Check out the U.S. Dollar Index going back to the early ‘90s…

DXY cycles through uptrends and downtrends that alternate every 10 years or so. When these trends flip, high levels of volatility hit the broader market.

Unsurprisingly, the dollar is in the middle of a significant trend reversal.

The buck’s precipitous fall this month has it challenging a 15-year upward-sloping trendline.

If and when that trendline breaks — and I believe it’s just a matter of when — DXY will enter a new prolonged downtrend.

The “sell America” trade will gain momentum, and markets will likely behave as they did the last time the dollar fell on hard times between 2003 and 2011…

During DXY’s early aught slide from 106 to 76, the MSCI Emerging Markets ETF (EEM) rallied roughly 400% from its April 2003 inception to its October 2007 peak. (Yes, emerging markets do experience uptrends.)

Gold also ripped 650%. Silver traded at 49 bucks. And Platinum was an honest-to-god precious metal. (It’s easy to forget that Platinum once beckoned more than $2,000 an ounce.)

It was a full-bore commodity supercycle that many traders welcomed following the dot-com crash.

Today, investors have yet to feel pain on par with the Internet Bubble. Sure, the past month and a half haven’t been fun, but Nvidia’s epic run and the Nasdaq’s best H1 in history (2023) are still fresh.

This will create biases and blind spots for most investors, and make pulling profits from the market harder than it already is…

This Is Only the Beginning

I think we all know deep down that Trump will get what he wants, Powell will lose his job, and short-duration yields will fall.

Let legal scholars debate whether Trump has the authority to fire an acting Fed Chair. It has nothing to do with the markets.

Powell or no Powell, the damage is done.

Sure, markets will swing as Trump jabs and Powell quips, but money is already flowing out of the U.S. stock market and into hard assets. Gold funds are experiencing record inflows.

This is likely just the beginning.

I anticipate other explosive commodity rallies to follow. Value-oriented European equities will outperform the U.S., and I envision Emerging Markets will pull off the unthinkable — a rally.

Focus on your next move during these turbulent times instead of the market’s spastic flips form red to green.

Next week, I’ll share with you the one stock I want to own right now and for the next 5–10 years.

It’s an under-the-radar company that checks the commodity and the emerging market boxes and could rip 10x over the coming seven years.