Fund Blamed For Gold Sell Off, Salida Capital, Tumbles 37% In September, 49% YTD
Last week, a fund rumored to be on deathwatch, was Toronto-based, gold and energy-focused hedge fund Salida Capital (whose gold exposure, in addition to Paulson's, were both factors in the rapid drop in the price of gold last week, following concerns that it was being liquidated in the open market - for more on Salida's gold exposure, read the attached letter). The fund promptly came out and refuted said rumors, however upon review of its monthly P&L, we are somewhat skeptical about its survival chances, even if, in principle, we agree with the fund's investment philosophy. The reason for our skepticism is that Salida was down a whopping 37.2% in September, and 49.4% YTD, a collapse which only compares to that of Paulson's Advantage Plus, and demonstrates vividly just how much of a misnomer the name "hedge" can be when applied to members of the asset management industry. What is worse, however, is that the reason attributed for this epic collapse is amateur hour 101, and any LPs should be far more concerned by the explanation provided for this underperformance than the actual underperformance itself.
Salida says: "September was an extremely difficult month for the Salida Strategic Growth Fund, which fell 37.17% in the month and 49.44% year-to-date. On the back of August's market selloff, we felt that our core gold, energy, and other resource names were trading at very attractive levels, particularly in light of prevailing commodity prices. We further felt that the Fed was moving ever closer to a QE3 announcement, and even more importantly, U.S. money supply had been growing extremely strongly through the summer months even without a QE program. U.S. money supply growth in recent years has proven to be very reliable leading indicator of risk asset markets. So far, however, it appears that this newly printed money has this time flooded into U.S. treasuries offering record low yields." In other words, it's all M2's fault. The problem with this simplistic observation is that as we pointed out two months ago, the move in M2 has nothing to do with the Fed, and everything to do with asset reallocation, when investors scrambled out of equities and into the "safety" of their bank accounts. Furthermore, the unwind of Regulation Q was also a main driver for this surge in the broad monetary aggregate. Alas, Salida made the most fundamental rookie mistake in finance and assumed correlation to be causation (as did Art Cashin, Dennis Gartman and Andy Lees) of Fed stimulus. The irony is, as we said, that we agree with Salida's underlying premise: "With an election year looming, a sputtering economy, and a Fed Chairman who has in the past touted the ability of unconventional monetary policy to cure such economic woes, we believe the [QE3 Large Scale Asset Purchases] announcement will come." Alas, the question is when. And as Salida just found out the very hard way, in finance you may be 100% right eventually, but if your timing is off, well, as Salida itself says, "True money–printing QE3 will come — timing is the question." In that, at least, they are 100% correct.
As for the reason why gold sold off so precipitously two weeks ago, a lot of it has to do with feedback loop concerns that Salida (as well as Paulson and other long-heavy funds) may be liquidating. From the fund's letter:
On the back of this surge in money supply, we made two mid–August investment calls:
1. We continued boosting our exposure to gold, believing it to be a relative safe haven, and that it would continue to attract inflows as QE3 speculation grew in the face of a renewed U.S. recession. While bullion performed well in 2011 through August, it was hit hard in September, falling a dramatic US$200/oz in only a 3–day span. Margin hikes by the CME and the Shanghai Gold Exchange, disappointment from the Fed, and rumours of redemption/margin call–driven fund liquidations and European central bank selling took their toll. These factors tend to be temporary in nature. In fact, with much of the developed world now in or close to recession, European sovereign debt concerns intensifying, and Chinese growth appearing to slow, the fundamental backdrop for gold has rarely been more compelling. A bet on bullion is a bet that central banks are about to ramp up money printing — a logical bet in our view. In fact, we feel safer in gold than anywhere else in today’s market.
2. We felt that a money growth–fuelled market rally would provide a good bounce to beaten–up energy stocks given the relative resilience of the oil price. Not only did the bounce not occur, but the sector has continued to sell off. Sell off is an understatement — it’s been decimated, with the WCAT ETF (a basket of mid–cap energy stocks) falling almost 40% over August and September alone. Our impression is that the sell–off is at least partially driven by forced fund liquidations (i.e. selling to meet margin calls or redemptions). While these factors tend to be temporary in nature and unsupported by fundamentals, we admittedly have less confidence in the short term outlook for the price of oil than we do in gold. It’s not $80 WTI (or $100 Brent) that has investors spooked — it’s the potential for oil to head lower in the near term. And with recessionary conditions spreading, we can’t totally dismiss such a scenario. Accordingly, we’ve now raised our level of hedging in both the energy sector and the broad market.
These two calls have been costly, as the market has moved against us. We still believe that the reasoning was logical, but arguably ill–timed. In hindsight, we underestimated the short term impact of forced selling.
Considering that the letter was written October 3, it is probably safe to assume that Salida was not the source of gold liquidation. At least not yet.
Salida's Monthly Performance Letter (pdf)
And Salida's October Commentary - worth a read (pdf)
(6 votes)
»
- Login or register to post comments
- 18154 reads
- Printer-friendly version
- Send to friend
Similar Articles You Might Enjoy:
- Art Cashin On The Way To The European Egress
- Charting David Rosenberg's Thesis: "No Gold Bubble Until $3,000"
- Why Gold and Silver Prices Will More than Double Again Even From Current "Expensive" Levels
- Chart of The Day: The Slippery Slope of Sliver
- Hoarding Of Physical Gold, Voracious Global Demand To Produce Undeliverable Gold Futures, Parabolic Move to $2700-3000/oz
Courtenay Wolfe CEO of Salida bought lunch with Buffett in 2009 for $2million LOL
http://www.youtube.com/watch?v=dbkt2HNLLfU
http://www.thestar.com/Business/article/663128
Salida Q3 2011 Quarterly Webcast 2011-10-05
Hear from Courtenay Wolfe and the Salida Capital Investment Team as they discuss the quarter in review and their market outlook.
http://www.meetview.com/salida20111005/
Courtney and Bill Clinton
http://www.youtube.com/watch?v=3iCrdhXh4xk
http://www.salidacapital.com/intl/index.php
Is that all she bought? Her nose seemed a little out of joint when she walked on stage.
She apparently buys butter in Bangladesh.
Having a bath with Buffett would also have resulted in nothing more than a rubber ducky?
Hey they blew up in 2007 or 08 as well. Not bad 2 times in 4 years although they call themselves a hedge fund, hedged as in highly leveraged small and mid cap mining positions.
About 2 years ago they made front page news in Canada when they paid half a million or so to have lunch with Warren Buffet.
"First we lose your money then we use the rest to have a six figure lunch with a greedy evil lying geriatic."
Go Salida...
"hedged as in highly leveraged small and mid cap mining positions"
It's funny how many funds call themselves hedge funds, when there is no fucking hedge, but rather one single leveraged punt. Don't they realize they would be better off simply buying AUD vs JPY or EUR vs USD, as it would be far easier to unwind the damn thing? The worst of these is Paulson - a pure bet that the Fed can generate the exact sort of inflation they want. Actually, thinking about it, they posted the JAT portfolio here the other day and that was simply the worst pile of crap I had ever seen...
lol - yep... "hedge" no longer means "hedge" - it has meant 'leveraged punter' for years.
I bleated about this back in June 2006 - see http://bit.ly/bhvuQC ), to wit:
"A hedge fund (at least one) just died and went to Hedge Fund Heaven. There is not other way to explain the massive downdraught in Gold and Silver, and the tendency of equities to experience "Don’t care about the price" selling late in a given session – despite the fact that timing is right for a bounce, the price level was right, and there was a valid divergence. It was an ohbvious candidate for a contrarian low – what, I have to be a ‘contrarian contrarian’ now?.
Now when I say "Hedge Fund", I actually mean that sort of fund that takes people’s money and punts in a highly leveraged way. Technically, that’s not a ‘hedge fund’ – it’s a leveraged punting vehicle: I don’t have a problem with such vehicles, so long as clients don’t think that the term ‘hedge’ in the name means that there’s actually any hedging going on. Anyone who thinks that will eventually do their balls.
Thing is, it’s relatively easy to perform in a stellar fashion if you’re trading with leverage and relatively small amounts of money (say, less than $100 million – although I would reckon that even $50 million is hard enough to place on a day to day trading basis). But when the thng goes well and attracts larger pools of money, the traders (they are NOT ‘hedge fund managers’) start enjoying growth in FUM (Funds Under Management). They have an incentive to grow FUM due to their performance pay scales (a 1% performance bonus on $10 million is a nice bonus, but what if FUM was a billion?…) and their ‘standard’ management fees. (What – you thought these guys would go ‘no win, no fee’? Are you out of your fucking mind?). (Ooopsie… sorry about the lingo – I have been watching Season 6 of "The Sopranos"… great stuff).
So anyway – you can bet your last twenty cents that the traders runnning the fund aren’t broke… but the fund sure as hell is."
"...you can bet your last twenty cents that the traders runnning the fund aren’t broke… but the fund sure as hell is."
Clearly the financial community has some kind of immunity from losing your shirt as i thought all else in the private sector could due to recent legislation on Directors responsibilities?!!
Ho Hum.
As Global Hunter posted above this is the 2nd time in 3 years no less Salida has blown up. What do you need on your CV to get a job at these Hedge Funds, "Loser" ?
"still logical, but arguably ill-timed."
I think that's what you say when you pull the pin on a grenade and forget to throw it.
and same result, blown up (fast) in a puff of smoke ;)
Implosion bitchez!!! I had to say it.
SALIDA = "EXIT" in Spanish
Time to head for the EXIT on this sketch fund.
SALIDA, BITCHEZ!!! I had to say it.
(¿ What were they THINKING when they named this one ?)
Exit = Egress ... but since few seem to know what egress means, they could have named it Egress Fund.
The market can remain irrational longer than Egress Fund can remain solvent.
Too bad they didn't invest their initial capital into physical PMs... Their hair wouldn't be on fire.
I am not totally buying this redemption shit. When people redeem, the money has to go somewhere. The liquidation reasoning only covers half of the equation.
I guess people are liquidating and buying more treasuries then gold.
I think people are entirely ignoring the 'win' in Libya. Gaddafi had twice as much gold as the UK, and god knows how many tons of silver, as he was planning on releasing gold and silver-backed money for the entire region...
It was about a week or two after the Libyan capital and surrounding area was under NATO control that we saw the prices of gold and silver crash-fall, which allowed the paper pukes to unwind their 'unwise' shorts at a relatively low cost... Coincidence? I think not.
interestingly...in Tango dancing...the "salida" means "the beginning of the dance."
http://www.youtube.com/watch?v=j5RteM-3utI&feature=player_detailpage
that's a tango you don't see everyday.
well, i know alot of ZH'ers who want to lncrease thier phyiscal PM pile, so i hope they drive the price lower, short term at least....
keep up the the good work...
alot of holders are counting on you...
X.inf.capt,
well, i know alot of ZH'ers who want to lncrease thier phyiscal PM pile,
The DIP is happening NOW.
If Europe doesn't pull thru PM's will be thru the roof.
If they fix their problems, PM's will go UP.
You buy now, or lose/lose.
oh yeah, brother, im still buying,
i do'nt think we have much time left at these prices....
though low $20's would be nice
though low $20's would be nice
In OUR Dreams...........................
My ususal 100% dead on supplier had nothing but 1oz rectangles(junk), and 100oz Ohio bars..................
So, I settled for the bars.
Folks, need to be loading up on Plat at these prices.
Production cost is within a few bucks of $1,500.00 an oz.And since 3/4ths rhwe worls supply comes from Africa,and new mines cost over a billion and take a few years to bring online, as soon as their is a shortage(mine strike),plus theirs not a lot lying around,it's usually mined w/rhodium,and palladium,they will take off.( all hard to find, and costly to get to).
yep, ive been buyin' on the way down,
even took coins out of my type set, per your suggestion, but...
IM NOT SELLIN' MY 1916-D dime in IN VF-20....
Platinum? Eww.
The thing about Plat / Pall is that you need an economy to actually use the metals industrially, to deplete supply / increase demand. In fact, I'm of the opinion that Plat / Pall will continue to decline and G / S will continue to increase, as the economies globaly collapse. Just my humble opinions. I own G / S. Actually, most of my assets, 90% are in G / S I am that sure. I own the other 10% in USAGX which I'm thinking of liquidating to be 100% in G / S. OK, I do have cash and household items, but I'm referring to investments.
I agree that a DIP (and possibly the DIP) is underway.
Question is, do you think the Salida liquidation means that we're nearing the end of the PM liquidation phase or it's just starting? If the latter, then biting the bullet and hanging out in paper for a while longer may be advisable.
I think there's still a grand liquidation event headed our way, so then based on your recommendation, I'm a "lose/lose." Oh well.
Patience peeps!
The Tyler Durden Detective Agency doing some of its finest work! This just reinforces the argument that the markets for gold ( and silver) are so thin that the actions of one player of significant size can cause significant moves. It doesn't take a global conspiracy of cloaked manipulators - just one small set of idiots can make waves.
Buy physical and hold on to it. When prices drop, buy more if you can. Take a 3-5-10 year view and you will win.
As the adage goes: the best time to buy physical is when you have extra cash.
Well Salida proved the point for the Gold bugs. Yes the Fed will print eventually but when will that be? How far down will prices collapse before it happens? Gold is a great long term investment just like a house can be but if prices are collapsing you might want to let them go down for a while before you hop on in. Gold doesn't lose its value in theory but that doesn't mean its price has to go up, when the price of everything else goes down so will the price of gold.
junkyardjack
Rational thoughts......................however.
While we DIDDLE ourselves,the Chinese/Indians/Asians, are SCARFING up physical by the tons.
IF what you say did happen, you have to ask yourself(prices bottom),East buys ALL they can get.
WILL there be any phys left for you, if you decided to purchase.
We are short now,Silver is almost impossible to get,(6-12wk deliveries,on anything but 100oz bars, and prems are up on both.
And this is at the low in the mkt.
Where do they go if it turns?.
Excellent advice AmericanSpirit. Take the long view... Let these dip shit fund managers that think they are going to time the Fed moves get their asses handed to them.
How can they time the Fed when the Fed can't time the Fed?
QEIII - LSAP + Reg. Q = deflation?
How many more are out there? Seems too many are still betting on a dollar collapse.
If GLD doesnt hold the 150 line they are toast. If not already.
+1 for your post. +100 for your avatar Dave......
It's kinda cute when the puppets talk to each other.
These guys are tiny, managing about $900m total over a wide number of funds. That's a drop in the bucket in the gold equity, bullion and energy equity world.
Whatever happened to the gold stock/bullion and resource stock markets, this insignificant fund had little if anything to do with it.
900mm leveraged up 10x is signifigant when you consider precious metals and pm mining stocks account for about 0.15% of mutual fund holdings in the US (read the 0.15% figure here on ZH about a month ago).
Yup.
Look at the first SCRIBD that Tyler wrote above.
Gross Long: 144.05%
Gross Short: 9.89%
And it's a gold and energy centric fund so they had some levered gold positions for sure.
gross long = 1.44 x 900mm, so about $1.3 bn. Gives an idea what impact Paulson unwind would have...
I think the smart move might be long physical, short futures... any collapse is going to cause a short term scramble for cash...
If you read the last sentance of Tylers article he(they) posit that Salida hasn't unwound yet.
I'm not sure about going long physical and shorting futures, that kinda' sounds like 'selling short against the box' which is really only used for tax purposes pre 1997.
Lastly,
So you wouldn't want to be in gold, you would want to be in cash. If margin calls sweep through during a crisis you could see gold hit $1,000 (maybe lower). If you think I'm being hyperbolic gold fell what....$200 in two days? Almost $400 in a month. I'm not saying it's going to happen but should a crisis materialize I wouldn't take it off the table. Paulson liquidating GLD could cause gold to correct 20% ALONE which at these levels would bring gold to around 1,300.
When a Paulson gold class LP goes into the fund and when they come out of the fund do they pay in / redeem in gold or cash? If redemption is in gold then does the fund hold gold for gold class LPs and borrow against it or will the fund have to buy gold to pay out in gold?
Redeemed money has to go somewhere.
I dont think a jump from a hedge fund-to cash-to gold all in 5 minutes will produce a rally in the cash.
Shocking - hehe.
I can only imagine that Pet Rocks will be used as leverage to recapitalize the European Banks.
There will not be QE3, unless CPI becomes deflationary.
Bernanke is a Freidmanite. If you increase the money supply in an an environment of non-negative CPI, you increase inflation in the long run, and risk stagflation.
look @ Britain for Christ sake. consumer inflation is 4.5%, and very high unemployment. That country is in the grips of stagflation. And yet they applied more QE. Jesus.
So ZH is correct, before you get QE3, the US needs to be in a deflationary environment. But by that time, you would have lost 50%, or worse in equities.
I beg to differ, Burnanke has no other choice but to come up with another unconventional scheme to inject monies into economy. He needs to get to .82-.84 DXY, then the debasement cycle can begin and equities will soar.
The O'Messiah will praise himself in saving the economy.
DXY is only one factor. The 3 board dissenter have already suggested QE to be stagflationary in their recent speeches. Volcker alluded to it in his recent NYTimes opinion piece.
Daytraders want QE so it can juice the market, because hedgefunds can apply more leverage, and push up equity prices short term.
But by itself, QE does not solve unemployment.
It's like getting more free chips @ the casino, while the building is about to collapse in on itself.
Are you suggesting that fed desicions are based on sanity, reason and efficiency, regarding the economy?
If yes, please feel yourself be laughed off the stage.
Amusing as that is, their decisions are sane. They are just based on a different set of assumptions.
I suspect "i won't be there, you won't be there" is part of those assumptions?
Nope, they are not. I'll tell you this much, gold is, and ft knox aint empty or full of tungsten.
Interesting possibility. I wouldn't bet on it, but regardless... interesting scenario.
That would depend on what betting on it implies. ;)
Well said. Regarding unemployment. Keeping the kids addicted to crack government checks is meant to sponsor desent by raising taxes (on the rich) to support the jobs that have been shipped oversea's. Oh the irony.
NO!!! How many times must we go through this??? Central banks print money to save "private" banks. They don't care about inflation, employment, or law. That's all BS meant to keep the people pacified and politicians thinking they set the agenda. QE3 isn't here because the banking system doesn't need it bad enough, yet.
Makes the most sense - as it makes all the non-sense in money sensible.
So what is the sensor Bennie boy Ben will use to open the flood gate - Timmay pointing a gun to his head or someone at the IMF?
" That's all BS meant to keep the people pacified and politicians thinking they set the agenda. "
...arguably, the working defnition of 'government'
And Salada is also correct...they just forgot to add "over there" to their strategy.
http://www.youtube.com/watch?v=XsxsT4g2wTw&feature=player_detailpage
that's right folks..."flavor!" know it, love it, own it.
So they bet on a full blown QE3 and lost. No surprise there. Wonder how many other doomsayers got caught with long gold stocks. Classic pump and dump scheme. Physical is where it's at. Even if it corrects, you have it in your hot little hand.
so the problem is with LEVERAGE.....Ahhhh, I see now. Tell me more....I've just levered up the entire...State of Washington...to buy....new bathroom fixtures. They're quite nice. Would you like to see?:
http://www.youtube.com/watch?v=QixYTs_hPdE&feature=player_detailpage
some say i overpaid. but i like them very much!
Nice house! I like what you did with the staircase.
Nice guest house. When will you show us the main residence?
That letter reads like it was written by a retail investor...
doublepost...
I'm sorry, but what the hell kind of investor wants to be in a fund that swings up or down > 50% returns on an average year. That's not investing, that's gambling.
Average year?
Fund Blamed For Gold Sell Off, Salida Capital
Thank YOU Salida Capital!!!!!!!!!!!!!!!!!!!!!!
for weeks ZH has been ranting any plunges in gold and silver were mainly caused by CME margin hikes. a possibility that someone was liquidating their winners wasn't much welcome here, was it? "after all, it's all CME's fault, move along".
Ummmm, from August 4, Margin Calls Force Start Of Gold Liquidation
agreed.
Exactly. Well done the Tylers. A pity some of the ZH readers only read what they want to hear (and don't read that very carefully I would guess).
Something that aught to support the opinion that CME margin hikes are the fundamental is the weakness of gold lease rates. Normally in a price infarcus like we've seen in the last month would be accompanied with aggressive rises in lease rates.
None of that occurred, so any leveraged position with no inention of taking delivery would not affect lease rates b/c there would be no physical gold per se in transaction.
We believe you - no need to unzip your pants and show us how big it is.
btw - Gold will get to under $25 before it gets to over $35-40 again.
I know this cause I printed out the chart and put a ruler over it and drew some lines on said Gold chart.
Can I now be an investment advisor now too?
I wanna be a niggerslave to $ at the highest order - just like everyone here. Working for a living is for real men and I am sick of it cause niggerslaves do WAY better.
IAMSLATTERY
You can be anything you want as far as I'm concerned. But please, I'll take all the gold you can find me at $40 an ounce or even 10X that.
Do you have to use that language?
If you had a brain, you would find another, perhaps more articulate, way of making your point.
How about Debt Deflation, bitchez? The concept isn't hard to grasp. Does anyone here still think that silver is behaving like "money"? Has it not become painfully obvious to you all that it is a levered up commodity plaything? No deneying that it is a traders wet dream due to the volatility, but seriously, some of the comments on this fantastic site are just inane.
for example
" Don't worry about the price, just keep stacking!"
"The price is in fiat, just stack and don't ever think critically about your investment decision"
"Silver and gold aren't in a bubble, the last time they were was over 20 years ago, no way are they in one again!"
"Don't be a sheep! Sheep use fiat. Only real money is gold and silver!"
Its sad really. As the credit crontraction continues all of you who bought gold over 1,200 and silver over 9 are going to see who the lemmings really were...
That is one spooky mug shot, RM. Guess you're all set for Halloween;)
Its my actual face. Seriously just google me
Read this http://freegoldobserver.blogspot.com/2011/10/forgotten-crisis-and-what-e...
Deflation is the biggest myth out there. Never in history has a debtor nations currency risen in value as its economy imploded.
I am guessing you dont live in Iceland.
"Deflation is the biggest myth out there. Never in history has a debtor nations currency risen in value as its economy imploded."
Is this statement serious? Do you have short term memory? What happened to the U.S. economy in 1987? Do you know what happened to the dollar at that time? How about again in '08? Market goes down, dollar goes up. As the deleveraging continues, credit supply contracts, less credit chasing a supply of goods. Irving Fisher's Debt deflation is a good introduction to morons who do not understand this concept. The fact that the author of the aforementioned article refers to Mish Shedlock as "Mish the idiot" tells you all you need to know about the authors understand of credit contraction.
providing a post that merely states the obvious (hikes -> plunge) isn't any answer to my rant, Tyler, and you know this. the point is, CME hikes are only a trigger encouraging the sell off that would happen anyway for reasons other than CME manipulation fetish. you do a great job but oftentimes you concentrate on simplistic explanations risking to miss important conclusions. and that's exactly what Salida did - simplistic expectations. let it be a lesson we all draw from.
This might very well explain why the barbaric metal has been steady recently after a tumble. I knew the Goldbugs were not really eating it.....and I know many otherwise intelligent and honorable people at work, etc. who have been buying even greater amounts of the yellow metal then usual.
A major fund in trouble needing to sell makes sense.
GL to all of them!
PM's are held for different reasons than mining stocks. One is for insurance, the other is for upside potential. The key to both is buying at the right time. Mining stocks are risky, leveraged mining stocks is suicidal. You will hit some homeruns, you will strike out. I think this fund may have shorted US Treasuries as part of their bet against the dollar, probably don't have much scalp left now if they did. '
LOL 37% in a month. 37% is just a wiggle right? Hold the wiggle.
They may have mistimed both, but they are 100% correct in both calls. Gold / Silver will be the best investment in the near - far future, and Energy (including solar / wind / alternatives) will be the second best investment in the long term. For the short term, G / S are the only play. Energy consumption will decline with the collapse of the economy as people will not be able to buy energy, corporations / municipalities will not be able to deliver energy. Expect blackouts as the economy falls. In the resurgence, restoration of civilization after the great devastation that's coming, the energy play will be robust. Will there be a stock market left? Who knows. That's why you want Bullion, physical.
That's a funny thing.
At my local gas station a 1.5L bottle of water is $1.50 (so $1 a liter) and there are 3.78 liters in a gallon. So $3.78 cents for a gallon of water when buying 1.5L bottles (I see a lot of people drinking bottled water) and gas at that same station is $3.10. So pound-for-pound (or gallon-for-gallon as it was) some people are paying more for water than they are for gas, and water is free out of the tap. Figure that one out.
I always forget other commodities in my posts... I know water and food will also rise dramatically, but I'm unwilling to invest in resources necessary for human survival. It's my own ethical stance. I will not ever invest in water, and I will not invest in food. I want those to be available at a fair price to all who will need them. And I won't invest in Oil anymore as I know that affects all prices dramatically. I will invest in alternative energy and G / S. I lost recently in energy and got out because I know the economy is unwinding. I was in FSLR at 135 and NALFX at 45 SPWRA ad YGE but got out of them before they plummeted. FSLR is around 60 now. I was also in industrials, CAT / CMI but they also dropped and I got out before they went lower.
so much for the "use value" theory of pricing. "they can get water for free but they still pay for it." yet another reason for gold to be 30,000 an ounce. of course if it falls to 1000 an ounce then it's straight to Madison Avenue so we can "brand our gold." Mine's called "puppy dog's gold." what about all of you?
I think I'll get Big Dick's Gold if the trademark is still available.