Loading ...“PMF, 20:25, all I’m assuming is that JS is talking about derivatives.
by ferret @ 22:39 pm.
Perhaps you could explain how you think a FOREX contract works?”
He is not talking about a Forex Contract in that statement, but about OTC derivatives that are unregulated.
….Very Interesting….what a great clean way to make a point….Saved at Analysis Paradise…
Policy makers are trying to “dispel this notion in the market that the U.S. has a policy of benign neglect to the dollar,” said Sophia Drossos, a currency strategist in New York at Morgan Stanley, in an interview on Bloomberg Television. “They are making it very clear that the benefits of a weak dollar are far outweighed by the costs.”
Futures on the Chicago Board of Trade show a 52 percent chance yesterday that the Fed will raise its 2 percent target rate for overnight lending between banks by at least a quarter point at its Aug. 5 meeting, compared with 31 percent the previous day. The contracts showed a 96 percent chance the Fed will increase the rate by December, up from 67 percent odds a week ago.
http://www.bloomberg.com/apps/news?pid=20601101&sid=aNvfDu9qky60&refer=japan
Perhaps you could explain how you think a FOREX contract works?
wtic:gold ratio for the last 10 years
————from MarketWatch / Minyanville ——————–
Splitting aces
Lance Lewis, writing on Minyanville late Friday, drew our collective attention to the ratio between the price of gold and the price of oil. At the time, the undervaluation of the yellow metal relative to Texas Tea was near a historic extreme. Following yesterday’s action, we’re still there in spades.
There are a few ways to play this. Investors looking for an inflation play or geopolitical hedge may want to consider gold as an alternative to oil.
Outright equity players could opt for the miners — Newmont Mining Corp. (NEM: NEM 46.73, -2.29, -4.7%) and Gold Fields Ltd (GFI:
GFI 11.94, -0.58, -4.6%) are two of his favorites — with the thought that when this ratio reverts, they’ll win on both the appreciation of the underlying metal and a reduction in fuel costs. There is risk to an outright bet — in my view, all roads lead to deflation — but I share this option for those who disagree.
Active traders, for their part, could slap on a pairs trade, getting long gold and short oil plays on a dollar-weighted basis and position for a regression to the historical mean that captures the disparity. This, in my eyes, is the smartest bet and one I’ve legged into for a trade.
Dollar, well I ran into another possible reason, the B guy may be preparing to consider raising interest rates but caught in a delicate balance of a already hurting housing bubble. Arabia, Opec wants a summit to discuss unreasonable oil hikes with the US? Hum, so it wasn’t Opec? Well I had enough shock for the day I think.
True story , son loves me to tell it. Was at my first wastewater treatment plant in spring of 94 , just got the job after being out of work for 51 weeks. Came in 1 day and a 2′ dia. snapper is in 1 of the clarifiers. WE tie a rope on a big barrel and threw it in . We tapped the tail with a stick and into the barrel he went. Pulled him out and put him down on the grass. Gary with gloves on grabs this massive tail. He picked it up to bring over to the fence to let him go over to the river. The whole way the turtle was trying to bite u know where on him. Funny it was . CT
“Gawd, PMFever - how you keep a positive frame of mind in the midst of this
by silverboom @ 21:35 pm.
carnage in the pms is beyond me…”
Buy when there is blood in the psychological streets, but the fundamentals are extremely favorable? This is what major reversals are made of in this historical context. Ask yourself one question. Is the Fed going to stop printing, or to continue to print in an accelerated fashion? The Dollar sits on a cliff with major resistance, above. Can the Fed raise rates without seeing……………………paper game over? Time for Gold and Silver to fly.
the words of encouragement. If it wasnt for some holdings in Canadian energy trusts and the safety we feel with our physical silver and gold holdings, I would feel quite gloomy now because of the unbelievably dismal performance of our precious metal, base metal, and uranium-related equities.
But I take you encouragement seriously, unless or until things get a lot worse over the next few months in the PM equity market - and if that happens, I’m not sure what in blazes I will do to try to protect what limited investment wealth we still have after the PM’s more or less continuous spiral since spring 2006. This is certainly a test of one’s faith and patience. Cheers. Equiz.
forgot to mention the 5 point rpw in the sugar.
rno
Yep, and as the German nurse said, we just let them get away with it. We need a bill for one to stop them spending it, and another to stop them from raising SSI and lower the option to say after 15-20 yrs like they do there. So they rant and rave, it’s not their money, too bad. Personally they should add if your single and you never get it because God forbid something happened, it goes to a survivor not in their pockets. Im sure insurance companies would rally against that, too bad, people would buy it anyways, but would help the ones who can’t afford it, besides its your money.
I saw this at the turn of 2003. Sold 2 big ones and we took the hit bought metal .Wife still say’s it was my best move. Kept 2 small ones , 1 other big one. Was going to sell them to help buy the next house with some cash. But sinbad brought up a good point, Brrrmystr and i were talking on the phone on how smart he was to mortgage his property in case one might want to run. This is making me think also. So i sit and read the tent and any where else , to learn what is coming , with open eye’s. CT When 1 is done learning , he’s in the ground.
If that plan does happen..the gold card, I can can only invision stocks going sky high it will probably be like throwing darts..pick a gold stock. But the only thing that worries me, if we merge with Canada, Mexico..Amero thing, what will happen to our stocks, that we payed for with Canadian or US dollars one of my plans on hand as I fear timing will be everything to keep us from profiting to such a extreme extent besides physical is to have cash on hand to buy case they freeze us out, don’t know if it will help, or like they say buy the rumor sell the news..at least a bit. For instance they lock us out of out stocks now backed by worthless money while stocks sky rocket. Don’t know but don’t trust such a plan. I feel also it will hurt Mexico bad, the really poor, crime will be everywhere. There already stealing gas here even now. They better have a fair plan and leave stocks alone.
The other day went walking on the side of the street they were digging up. Found some old rail road spikes (8 so far) and an old horse shoe. Cop on detail say’s what u find , and i said treasures from the past. One of the workers say’s worthless , and i said bet u find value in the $ , he just looked at me. Next door used to be the train station i told the cop he said i never knew that , i said over there across the street used to be the stables , 6 of them, to cart off the passengers . The building we live in use to be the general store. Cop say’s how do u know this ? I said i like to talk to old people. Lots of history here, the train went straight down our street. CT
carnage in the pms is beyond me…