Pessimism Abounds, But I Think We're Due for a Rally

Includes: GLD, RNE, SLV
by: Hobbes Investment Research

I don't know if I'm turning into one of those crazy "the world is ending let's buy physical gold and silver" types, but I found this article interesting and scary. The author provides his interpretation of the Davos Forum. The author comments about Putin's blue print for a post USA world. It seems credible, but it's not mentioned anywhere that Russia is on the verge of bankruptcy. They'll burn through cash very quickly if oil prices don't rise.

I never heard of this guy before, but he seems to be dead on:

Faber says Eastern Europe is collapsing, because they borrowed too much in foreign currencies (this does not bode well for their creditors).

It seems that everywhere I turn there is deep pessimism about the future. As I'm very pessimistic myself (and view myself as a contrary indicator), I've sold my puts and bought calls on Friday. The market can continue falling, of course, but I think we're about due for a rally (probably just shorts covering).