iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,445 Blog Posts

You Have Two Choices: Board the Ark or GET IN THE GOLD MINE

I can hear the violent waves cresting against the ark’s bow as I write this. This harmonious treachery of the sea, wreaking havoc on those without a safe haven. From my vantage point, there are two places to play this market.

  1. Board the ark and get long TLT in the hopes that investors continue to arb against German bunds via the purchase of American bonds.
  2.  Get in the gold mine and hope central banks will continue to believe they can print their way out of the jam box they find themselves in.

Understand, the circumstances of the market and the central banks are completely different. They have to go to work every day and print money, like morons, then go out and buy junk bonds, crossing their fingers and hoping it will spur inflation. From their perspective, THINGS ARE AS DIRE AS THEY COULD BE. Why else would the BOJ and ECB be QEing themselves to death? If everything was going swimmingly, rates would normalize and central banks would be unwinding their positions, not the opposite.

Going forward, all eyes will be on the currency crosses, the price of commodities and sovereign bonds yields.

Swiss 20 yr bonds are yielding -.04%.

GLD TLT

I like U.S. bonds and gold, indefinitely.

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15 comments

  1. vampyr

    You might be interpreting it all from your much loved estuaries of mulch. It’s a valid perspective. I’m not hating on your mulch.

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  2. awanka

    I envision a golden ark.

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  3. it is showtime
    it is showtime

    Fear porn

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  4. infinitezuul

    Buying gold whenever it hits the 200DMA for a long term trade.

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  5. ironbird

    Biblical. The world is a yuge shithole full of frogs. Those things only know how to kill. But god willing stocks will soar to allow a beast to reign. Never did read the good book.

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    • btn

      The Republican establishment has already lost control of their party. First it was the Tea Partiers, now Trump, firmly put there by the abandoned working class.

      For all the “not Hillary” talk bouncing around the web, I’ve yet to seen any evidence that Trump cares about anyone other than Trump. He is the ultimate flea circus ringmaster.

      I don’t see the stock market staying up until November, so we’ll see if a stock plunge is enough to get Trump elected. Then we’ll see who the real “beast” is when Trump sh!ts on the 99%, just as he has done his whole life.

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      • ironbird

        How does one help the unsullied. You youngsters are a trip. Wild guess you have never had a job let alone a business. There is no comparison. Possibly to new to see it. Not your fault.

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      • it is showtime
        it is showtime

        the Trump-narcissistic-ringleader theories became very invalid months ago. cliche but: he is putting his life on the line. so the logic doesn’t work that this is all the trump show all about trump. the individuals/entities he’s ruffled from vatican to bushes to dignataries, all part of status quo power, no logic that he’s not personally risking a ton+

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  6. btn

    No doubt I’m much older than you think. Don’t forget, Bernie is a liberal.

    Not too mention that your condescending remarks are just a futile attempt at filler becuase you didn’t even *try* to dispute what I wrote.

    ” I’ve yet to seen any evidence that Trump cares about anyone other than Trump. ”

    Don’t feel bad, younger minds have been proven to learn better. Not your fault.

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  7. frog

    Come on, people. Young or old, everyone has their right to their opinion and their vote.

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  8. cascadia

    Your opinions mean nothing when you’re talking about anything other than actual issues/events.
    Good luck changing each others’ perception of the world.

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  9. awanka

    Premarket looking ugly. Futures down 100. Let’s see if the US can save the day again.

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  10. pb

    Exter’s Pyramid. It only matters in deflation. Which we are in.

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