Wed May 16, 2012
The markets of the Dollar and Bonds are nearing their extreme highs while gold and commodity related funds are back near their extreme December lows. Here is the rundown
Security Date of Extreme Price Close 5/16
CEF 12/14 19.84 18,92
Euro 1/6 127.13 127.32
Dollar 1/11 81.35 81.22
TLT 12/16 120.75 121.66
Note that CEF and TLT were two days apart on their respective extremes, the Duro and Dollar were weeks later. So don't expect all to turn on the proverbial dime the same day.
Yes the Facebook IPO gets priced today and sold Friday. Here is a story on how two companies achieved
different results with Facebook.
An alert reader of the TMP notes that the IRS has proposed arising the capital gains tax rate on ETFs from 15 to 28%. No doubt this will affect CEF. But at the moment several additional increases in tax rates are in the cards for 2013.
I have orders in place to buy CEF on a successive basis as the price drops below $18. I didn't think that would happen but we could see an extreme the next few days.
Dollar versus Euro
Another thing to note here is just how quickly and how often these two currencies bounce to extremes versus one another.For the Euro that is a
January low
February high
and now a May low
Again CEF is trading at a discount to its Net Asset Value, imagine, gold and silver bricks at a discount.
Dollar versus Oil
Here is the same chart but substituting oil for the Euro, note the similarity?
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