Don’t bother listening to any of the bullshit on Bubblevision, or even stuff you read on the latest financial blah blahg. Unless it’s The PPT, you are wasting your time.
Rather, you should concentrate on foreign commodity names with strong earnings paths, because the crap dollar is what’s making this thing work right now, and that will be true right through late October, early November.
You may remember, we have an election coming up?
Here’s the deal on the dollar. It’s hugely oversold right now and very ripe for a bounce. I think it gets all the way to $85 and maybe more before collapsing again. Here’s the projection:
If you are in gold and silver, gird your loins. We could see as low as mid $1100′s on the gold front, as a result of the dollar’s return to $85. “Que sera,” I says. “Suck it up,” I says. We’ve been down this road before and we certainly know it’s ultimate end. (That’s “up” for you noobs).
In the meantime, buy some PBR, or some CEDC on any pullbacks– you can’t go wrong betting on Brazilian oil or Polish folks taking to the bottle. Both are top “furrin picks,” on top of my PM hordes. Go get ‘em.
On the PM horde front, and with regard to a dollar bounce, I may sell some calls. I will certainly let you know. Right now, I am sitting, eating samiches, counting coin.
And drinking fine wine and eggsellent ales, of course. I am still on vacation, after all.
Best to you.
16 Responses to This is the Market…
Interesting, Mr. Goldfinger.
As a bullshitter, I like the optimism.
What’s your S&P 500 target by the end of the “election rally”?
Thank you, Mr. Goldfinger.
I’d speculate… 1250, maybe even 1300 by the time they get done.
Keep in mind, that will be in teeny tiny little dollars.
Can you say, gay?
Rather say “correuct,” (sic).
Not complaining at all, Jake, but why the ramp-up in the miners today? A bit confused here…
I’m as baffled as you, but then this gold bull is full of surprises.
The only thing I can think of is “catch up” from yesterday. Does seem like gold is continuing to track the dollar, at least when the dollar is “up.”
Argument for the gold to remain in bullish trending pattern … and pending melt up.
$166 billion jump spurs concerns over policy:
Federal Reserve weighs steps to offset slowdown in economic recovery:
-A not so subtle hint from Ben Inc. that he and the boys are on the case and will begin to run the printing presses soon.
Begin? Check the dollar chart above. They’ve been clanking since early June.
All foreplay, Jake.
Until recently, poor US economic data was oddly triggering the buying of dollars.
Have the implications for more money printing really been reflected yet? I don’t see it yet, but the upcoming ‘official’ QE, which can reliably be expected to begin soon should initiate the next leg up. That and the shift in sentiment should allow gold to excel in outperforming the dollar.
Typically, demand wanes in the summer, where jewelry demand drives the price of gold. But, investment demand isn’t seasonal…
I am for the first time 50% invested in gold, silver and miners.
Welcome aboard… what’s the avatar? Hard to see… some sort of DJ?
what’s the avatar?
DJ John Paul…former resident Vatican doctor of spin.
cedc = jager, obviously a good choice
Given the amount of hard drinking Poles out there, I can’t believe that stock ever went down….