Archive - Jun 25, 2010

And now for the envelope... oops, it just burned down. Oh well. First no budget, now, no GDP. According to unsubstantiaed rumors, the fire is headed to the records room at the US Treasury next. Unfortunately for our creditors, there will soon be no paper record we owe money to anyone. And like that, our $13.1 trillion in debt, it's gone.

Margin calls from losing positions have forced hedge funds to free up cash by covering shorts in natural gas. Real demand isn’t coming until we have vastly more pipelines, power plant conversions, and above all, storage, than we have now. Until then, the big production companies are going to race to out produce each other, praying they can use volume to offset price cuts, creating a huge weight on prices. (CHK), (DVN), (UNG).

I have released my opinion of UAL and CAL as candidates in my short portfolio listing, as well as the detailed logic behind the decision.

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 25/06/10

This is a major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics. This is Part 1.