Archive - May 2010 - Blog entry

This is my wish list and it would be better if....

For those basting in the euphoria of last Friday's rebound in the financials thus believing Goldman's shares are oversold, I'm happy to reiterate that the downward trend from the technical chart remains intact.

Here are some Trivial Pursuit questions for you:
1) What is the biggest market in the world for a physical commodity?
2) Is the gold market one of the smallest markets in the world for a physical commodity?
I would guess that you answered:
1) Crude oil.
2) Yes. Gold is one of the smallest commodity markets in the world.
If those were your answers, you are wrong. What everybody believes to be the "tiny gold market" is in fact the world's biggest physically traded commodity market. Let's have a look at some facts. The London Bullion Market Association (LBMA) "over-the-counter" (OTC) gold market trades approximately 90 percent of the world's physical gold trade.

If you don't give us what we want, we'll shoot ourselves ...

Scam Du'Jour ...

It's silly to compare today's markets to those of the 1930s or even 1990s. Erratic moves have become the norm, not the exception. What's driving these moves and what is the paradox which threatens the integrity of capital markets and might ultimately threaten the global economy?

Fresh off his "You own the Red Roof Inn" tour, Alan Grayson gives another svelte performance as he introduces the latest soon-to-be buried-in-committee bill with the help of his trusty easel.

Dr. Doom sees stock market to sell off another 20% in the next few months. This time, I will not argue with the man.

Not just because you want to talk with that cute hippie chick about something you think she's interested in ...

The companies who make microgeneration possible will make BEAUCOUP bucks. And please remember that the whole partisan left-versus-right show is a false dichotomy.

Are people who don't want to rely on rubbing two sticks together to obtain all of their energy needs "conservatives"?
Are people who don't want their livelihood as fishermen trashed "liberals"?

Are people who want energy security - so that oil-rich countries can't blackmail us - "conservatives"?

Are people who don't want to drink life-shortening, virility-neutering mud in their water "liberals"?

The Fed is in for a big surprise when they realize that "excess capacity" has nothing to do with inflation. Their latest policy is founded on this concept. These pre-'Copernican' Fed economists need to understand that they create inflation. Perhaps they should just look at these charts. Good luck when they try to sell their toxic assets.

Here are 10 gold charts that every global commercial investment firm is terrified to show their clients.

Although early stage delinquencies are improving in the aggregate, the mass of both early and later stage delinquencies are continuing the trend of moving from the usual suspects of the sunshine belt boom states of Florida, California to middle America and states such as VA, NC and RI, who lead the loss pack in several categories - even beating FL and CA for several quarters running. Take note that some of these states never experience a big boom, but are suffering the bust anyway...

More bread and circuses ...

If you get the double dip recession that Europe and China are trying their best to deliver, you hit a home run. If the recent diabolical market action turns out to be just a vicious head fake, then they would be selling into a hole and getting killed on the next whipsaw. Only those who believe in the Easter Bunny think diversification will protect them. Cash is best hedge of all. (USO), (EEM), (SLV), (PPLT), (PALL), (JNK), (YCS) (FXE), (FXB), (FXA), (FXC), (VIX).