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Otavio (Tavi) Costa, Otavio (Tavi) Costa of Crescat Capital, described positioning in the U.S. dollar as being at one of its most extreme levels in recent years.
He described the currency as deeply overvalued and technically stretched, and stated that with interest rates rolling over and the Federal Reserve nearing the end of its hiking cycle, a major turning point may be approaching.
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Costa has previously identified gold miners as the cheapest sector among U.S. equities, citing a roughly 10% free cash flow yield in a recent analysis here. In a separate note, he compared gold's recent correction to the 2008 downturn and viewed the pullback as a potential opportunity here. These observations reflect Costa’s ongoing focus on valuation extremes in both currency and commodity markets.