A great man once said “it only happens because you let it.”
Natural gas stocks are in play. The commodity is the biggest winner of 2011, so far. Shares of SD, CHK and GMXR look great. Nevertheless, I am trained to believe it’s all bullshit. So, I will refrain from chasing. Although I am long GTE, OXY and WTI, I am really more into MOTR-boating and buying up shares of social-networking plays, things of that nature. I hop from thesis to thesis because I get bored easily. While you fat fuckers smoke cigarettes in your cars, windows rolled up, “The Fly” is taking down baseball player annual wages.
Are you going to teach us all how to invest? Fuck off, no one gives a shit.
Due to the spike in yields, the Fed is now insolvent, for all intents and purposes. However, since they are into expanding the money supply, they can simply print-buy Treasuries until they are blue in the face. If you think about it, Bernanke’s mandate has been achieved, as estimated inflation is now around 3%, up from 2%. Yields have gone up; but, nominally, after inflation, they are lower. Ben is a fucking genius; but he will need to get bailed out by Congress, whenever he decides to contract the money supply. His insolvency will be revealed when he decides to sell Treasuries. Because of this fact, I believe he will not be able to control inflation, when needed. When will he sell?
Answer: when inflation gets too hot.
You should know, the Fed doesn’t give a shit about commodity inflation. They only care about wage inflation. Commodities are temporary phenomenons, but wages last for awhile.
With my money, I am hoping for a dip, in order to allocate my last 10% of cash reserves. I am convinced, with the conviction of an innocent man on deathrow, that we trade higher, all based around the laws of science, dictated by the Earth, Sun and the Moon.
NOTE: The PPT will be blessed with a Social Networking Index sometime today.
[youtube:http://www.youtube.com/watch?v=63kRUCWstCo 616 500]
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