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Where to Play the Dead Cat Bounce in Europe
In one of the worst timed ETF launches of the year, Van Eck brought out the Market Vectors Poland ETF (PLND) in November, just on the eve of the Euro collapse. iShares followed with their MSCI Poland Investable Market ETF (EPOL) at the end of May.
Poland is one of Europe’s own emerging markets, and its close links with the German economy will enable it to ride the coat tails of any future economic recovery. Take the euro to parity against the buck, and you have the makings of a massive export boom down the road in the Fatherland.
Poland also sits on a gigantic coal bed, and with its weak environmental regulation, will make it ground zero for importing American “fracting” techniques to unleash massive natural gas supplies.
The collapse of the world’s most despised currency means that down the road, Poland can ditch the Zloty and join the European Community at a highly favorable exchange rate.
My Euro maven ex-Economist colleague, Vivian Lewis, of the daily Global Investing letter (click here for her site at http://www.global-investing.com/ ) also says that the country is embarking on a privatization program that will sell off relics from its communist past at discount prices. When the United Kingdom did this during the eighties, everyone, including myself, made a fortune.
Load up on Poland when you see the first crocuses pushing up through the ashes.
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.
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"Take the euro to parity against the buck...."
Well, if I were that sure about it...
I'm not.
Ummm, question please. If the world around it is collapsed, who's going to buy their stuff? Well, OK, if they ramp up Vodka production, perhaps they will soldier on.
Wow MHFT...you really need to get out of your distressed length, eh?
The phrase 'dead cat bounce' is horrid and deeply offensive to those who love companion animals.
It is shameful to use this term, should be edited out of any post on Zero Hedge or anywhere else.
Dead fat cat bounce
I know that in top US medical schools as recently as the 60's learning about lethal drug dosage levels often involved cats. In one such telling I heard cats would be dosed (after correcting for body weight) and then dropped onto the table. A lightly drugged cat would be able to rotate into the feet-down position in anticipation of impact but eventually, after successive dosage increases...not so much.
I don't know if the term originated here but eventually, one would assume, a "dead cat bounce" would be observed.
How about "Plucked Spotted Owl Flap"?
At least the owl is alive in this case...I think...
Dead banker. Dead banker bounce. Start laying the proper seeds.
"everyone, including myself, made a fortune."
Those were the days, my friend. Now peddling penny advice
The dead cat bounce just ended with a 75% rally in stocks. Tell us how to play the next leg down in the world wide recession.
That would be the dead fed bounce; and yes, ignorance was rewarded via stupidity.