Friday Dec 30, 2011
The US Dollar is at its high, other currencies are at their lows, emerging markets have been beat up and lower since Nov 2010, the WSJ reports that Indians are now buying cell phones instead of gold, CEF Central Fund trades at a discount yesterday, everyone is certain the Euro is going lower to say 118, so
now is the time to buy CEF or GDXJ. GDXJ is trading at early 2010 levels when gold as $400 higher. Captain Kirk, this is irrational. But that is what financial markets do.
Yesterday on Fast Money CNBC Gartman suggested it was time to start buying gold again.
Money moves from one end of the financial hour glass to the other. The fact that stockcharts.com and other popular programs available at your discount broker will display one minute time spans, updated in 15 second intervals, speaks to the vagary of valuation.
One can buy books or get a college degree in valuing investments, I have one if anyone is interested. But I have learned that the 'fundamental value' of anything is meaningless. Whatever that value is, it never stays there very long! Rather markets are driven by the emotions of the participants. Now emotions are irrationally in favor of the Dollar and against the Ausssie ad Loonie and gold. So it is time to buy, yes the Aussie, Loonie and gold.
We noted yesterday that CEF actually traded at a discount to the bullion it owns, a rare event.
I will update the site this weekend but I suspect most know the expectations OF TMP.
Since most amateurs have sold stocks to buy the lowest treasury yields since that bull began in 1982, treasuries will surely fall and money will flow to stocks in the next quarter. The dollar looks toppy which is bullish for commodities.
Enjoy your day
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