I ... An Elliott Wave 3 Down in stocks, likely commenced in stocks on Monday September 27, 2010: the mother of all bear markets started today.
The currency traders traded the EUR/JPY, traded down to 113.47 from 113.67, this is seen in the bearish harami in FXE:FXY, and the Swedish Yen, FXS:FXY, carry trades stalled out, causing stocks to trade lower.
The Yen, FXY, traded up 0.03%; and the Euro, FXE, traded down 0.16%; and the Swedish Krona, FXS, traded down 0.49%.
Volatility, VXX, rose; and inverse volatility, XXV fell.
The chart of the small cap value shares, RZV, relative to the small cap growth shares, RZG, ... RZV:RZG, reflects that debt deflation operated today, taking world stocks, ACWI, lower.
The world stocks, ACWI, and the S&P, SPY, both entered entered into a Elliott Wave 3 of 3 down today September 27, 2010, as shown on the chart below. The Elliott Wave 3s are the most sweeping and dynamic of all economic wave; these create wealth on the way up and destroy wealth on the way down. For all practical purposes all stock wealth will be destroyed by the downward action of this wave.
The bearish engulfing candlestick in the tax managed buy write opportunities ETF, ETW, confirms that an Elliott Wave 3 of 3 down has commenced in stocks.
The chart of the tax managed buy write ETF, ETW, compared to SPY, QQQQ and IWM, for the last year, shows the great fall potential and short selling opportunity of this ETF; all I can say is “lookout below”.
The chart of Exxon Mobil is terrifically bearish, XOM, as it failed to rise above its August 9, 2010 high. It closed down 0.1% at 61.71. According to Yahoo Finance, it has a PE of 11.91 and pays a dividend of 2.9%. The era of profitting from growth and income stocks as well as natural resource development stocks is done and over.
Major currencies, DBV, fell more than emerging market currencies, CEW, as is seen in the chart of DBV relative to CEW ... DBV: CEW.
The US Dollar, $USD, close at 79.39.
A ... ETFs trading lower today included:
Sweden, EWD, -2.0%
Spain, EWP, -2.0%
European Financials, EUFN, -0.9%
Bnaks, KBE, -1.6%
Nasdaq Banks, QABA, -0.8%
300% Real Estate, DRN, -3.1%
Active Real Estate, PSR, -1.2%
Residential Real Estate, REZ, 1.5%
Vanguard European, VGK, -1.1%; the ProShares 200% of Europe, UPV, fell 1.5%
Nasdaq Biotechnology, IBB, -0.8%
Semiconductors, XSD, -0.2%; the ProShares 200% of Semiconductors, USD, fell 1.3%
Junior gold mining shares, GDXJ, -0.8%; I have consistently encouraged those invested in these to sell and buy the real thing that is gold; the chart of these relative to gold, GDXJ:GLD, shows these to be loosing value.
Internet Holders, HHH, -0.4%, manifested a lollipop hanging man candlestick.
International Dividend Excluding Financials, DOO, manifested bearish engulfing and fell 0.7% lower; it is the canary in the stock market coal mine warning investors to get out. Yahoo Finance chart shows DOO has been a strong performing in the last three months, providing a 16% return; I pity the dividend investor for the devastation of principle that is to come.
Natural Gas, UNG, -2.9%
Oil, USO, -0.5%
200% AIG Oil, UCO, -0.9%
Timber, CUT, -0.5%
Commodities, DBC, -0.7%
Base Metals, DBB, -1.9%
Lead, LD, -2.1%
B ... ETFs trading higher today included
Copper miners, CU, rose on a higher Australian Dollar-Yen carry trade, as seen in the chart of FXA:FXY. The Australian Dollar, FXA, rose 0.24%.
Tata Motors, TTM, rose, 1.6% to a new high, while India Shares, INP, fell -1.0% lower, on a higher rupe, ICN.
Brazil shares, EWZ, and the Brazil Small Caps, BRF, rose of a higher Brazilian Real, BZF.
The defensive sectors of Telecom, IYZ, and Utilities, XLU, rose; as did diversified utility, Centerpoint Energy, CNP.
Airlines, FAA, generally pops higher right before market downturns as is seen in the chart of FAA.
Chile, ECH, Indonesia, IDX, and Thailand, THD, Peru, EPU, traded higher. Emerging markets small cap dividend, DGS, manifested a bearish harami.
Las Vegas Sands, LVS, saw terrific volume with 33,976,782 shares traded: it rose 4.1%
The Ted Spread, $TED, rose.
The food commodity ETN, FUD, rose; but, manifested a lollipop hanging man candlestick. I believe that 23.5 and .22.5 serves as a foundation for the food commodity ETF, FUD. Bloomberg relates Brazil crops shrivel as Amazon dries up to lowest in 47 years.
Bonds, BND, rose 0.43% to close at 82.61 which is just shy of its August 31, 2010 high. Distressed investment mutual fund Fidelity Capitol and Income, FAGIX, which approximates the value of investments owned by the Fed, that it acquired under the TARP facility to create Excess Reserves, rose to close at 9.01.
The 30:10 US Sovereign Debt yield curve, $TYX:$TNX, rose near its all time high, causing TLT, and BLV to rise strongly and IEF to rise moderately.
Junk Bonds, JNK, rose 0.10%; this is likely a high in junk as the carry trades are now exhausted.
II. The Fed may announce QE 2 On November 3, 2010 ... If it does, it will be gold inflationary.
I had been thinking it wise to go short the market, as the EUR/JPY, has reached full expansion, but after reading Tyler Durden's article ..... Why QE2 + QE Lite Mean The Fed Will Purchase Almost $3 Trillion In Treasurys And Set The Stage For The Monetary Endgame ..... I've concluded that further fiat asset expansion is possible, if the Fed does come out with a surprise QE 2.
Yes, QE 2 may come November 3, 2010 .... The Federal Reserve may announce a plan to buy US Treasuries, it may simply print Dollars, yes simply print and print and print; and buy US Government Debt, to prevent a deflationary collapse.
This of course would send the value of the US Dollar, $USD, plummeting, and would be quite inflationary to many assets especially gold. I think it wise to buy gold at this time.
Gold is the final refuge against universal currency debasement relates Ambrose Evans-Pritchard.
III ... Today’s News Reflects On Going Deflation And Slowdown
A ....... Europa Press Release details that Jose Manuel Durão Barroso, President of the European Commission, spoke before the Council On Foreign Relations, the CFR, on September 23, 2010 on the success of European Economic Governance, commitment to social cohesion, and progress towards economic growth stating:
It is now vital that Europe moves from crisis management to a reform agenda.
Budgetary expansion has played its role in countering the decline in economic activity. Now, in the context of an accommodating monetary stance, only significant structural reforms will prevent medium-term growth prospects from being disappointing.
The priorities on the to-do list of EU economic policy making are: completing financial regulatory reform, continued fiscal consolidation, and tackling macro-economic imbalances by frontloading structural reforms.
I could summarise all of this even further with just three words: stabilise, consolidate, reform.
The adoption of the so-called 'European Semester', which concentrates in one semester the bulk of economic surveillance of the EU, will encourage greater co-ordination, economic transparency and coherence between Member States, as they plan, discuss and adopt their national budgets.
Taken together, all this represents quite a leap forward for European economic governance.
Mechanisms to combine European-led economic reform programmes with European financial solidarity have been created, which were simply inconceivable before the crisis.
These are historic reforms for Europe, but they will also have an important impact on global financial markets.
In parallel, we are now frontloading growth-enhancing structural reforms through our Europe 2020 strategy: a programme to guide our economy towards new sources of growth and social cohesion, in order to achieve smart, sustainable and inclusive growth.
B ....... EconomicPolicy Journal reports from Roubini Global Economics More Economic Slowdown Ahead: “The September flash PMI reading of the eurozone composite index declined significantly to 53.8 from 56.2 in August, led by slower output growth in the manufacturing and services sectors. Meanwhile, public sector net borrowing increased in the UK. In the Czech Republic, Hungary and Poland, central banks look set to keep interest rates unchanged until early 2011, while Poland’s state-owned energy utility has warned it might have to cut the gas supply unless a long-delayed import agreement with Russia is finalized
C ....... EuroIntelligence reports: Belgian borrowing costs are rising at the fastest rate in the euro area; the EU Commission is leading discussion on Stability Pact fines; European banks will have to rollover some €225bn this week; Peter Praet calls for an uniform international banking oversight framework; Wolfgang Munchau takes a closer look at the EFSF, and countries that use it will most likely end up defaulting; it emerged, meanwhile, that the eurozone had set up a crisis task force – the problem was that it could agree on anything; the Wall Street Journal provides the history of how Eupean leadership arose to deal with the European sovereign debt crisis.
Belgian borrowing costs relative to those of Germany are rising at the fastest rate in the euro area since talks between the regional parties to built a government broke down early September, reports Bloomberg, Belgium is without government for more than three months now. Investors are demanding now a yield premium of 90bp for 10y bonds, 41% higher than early September compared to only 21% for Ireland over the same period. Belgium plans to sell securities later today that mature in 2016, 2020 and 2041. The country’s debt agency increased its target for forthcoming bond sales by €3.25bn to €37bn. The Belgian government faces interest and principal payments on bonds and loans of € 17.6bn in the fourth quarter, and 62.4 billion euros next year, The leaders of the two winning parties agreed last week to create a taskforce to study ways to regionalize parts of the national budget, with a prospect of restarting government talks.
The FT has an intriguing article saying that a proposal by the European Commission to invert the majority rule over stability pact fines has run into opposition from some member states including France. Now Germany has backed once again the proposal, setting the stage for a showdown at today’s meeting of the van Rompuy’s taskforce. Under the present rules, a recommendation by the Commission requires a qualified majority to be confirmed. The Commission wants to change that to QMV to overturn the decision, hoping to avoid a situation as in 2003 when Germany and France managed to assemble a blocking minority against a deficit procedure (which they would not have been able to do so with the QMV threshold been reversed). France is among the countries sceptical of this plan while Germany is pushing for more automatism. Other issues on the table are the inclusion of debt criteria equal to that of the deficit; penalties for violating recommendations; automatic sanctions; suspension of voting rights and fines for macroeconomic imbalances. El Pais has a very good summary of the points and the status of the debate last week.
Peter Praet, the executive director of National Bank of Belgium, is quoted by the Wall Street Journal as criticising the lack of a uniform international banking oversight framework that addresses the problem of bank failure of cross border banks. He advovated a system where countries with poor crisis resolution frameworks should impose higher capital ratios. He said some regulators were scared about pushing too aggressively because of the fragile state of many countries' financial markets.
The FT reminds readers that we are facing another big rollover week with €225bn in a 3 to 12 month auctions coming due for repayment this week. It is hard to predict what will happen. The giant €442bn rollover in the summer went surprisingly smoothly, but there is a possibility that a high rollover rate might push up market interest rates.
In his Financial Times column, Wolfgang Munchau takes a closer look at the European Financial Stability Facility (EFSF), and concludes that while it is structured like a CDO, it is not produce low interest rates. The loans will probably be significantly more expensive than the loan to Greece, due to the EFSF's own funding costs, which will probably exceed those of the EIB despite the AAA rating. He says it is hard to imagine a situation where an EFSF loan would resolve anything.
Wall Street Journal put together some interesting details about what happened between France and Germany ahead of the Greek bailout, in its investigation about the ‘secret’ task force the eurozone member states set up after Lehman Brothers collapsed in 2008. The task force was set up to prevent a default in the eurozone. The article concludes that“Deep differences on economic policy between Europe's frugal north and laxer south, between Germany and France, and between national governments and central EU institutions hindered an effective early response to the crisis. Only when faced with calamity—the collapse of the euro zone—did leaders put aside their differences and reach a compromise.”, D ....... Joshua Chaffin in FT.com Brussels Blog article A Brussels Showdown On Economic Governance writes: “For Europe, this is the pivotal week in which sweeping new rules will be introduced to overhaul the way that governments manage their finances. The idea — through a combination of better auditing and tougher penalties — is to prevent EU member states from ever again piling up the weighty debt loads that caused Greece to buckle and are now testing Ireland, Portugal and Spain.But in Brussels, the week is playing out more as a cross-town institutional showdown. On one side is the European Commission, led by José Manuel Barroso, which on Wednesday will present its legislative proposals to improve economic governance. On the other is the European Council, led by Herman Van Rompuy, who is leading his own task force on the matter. Although the two men steadfastly deny any rivalry, it seemed ordained from the moment the Lisbon treaty established Mr Van Rompuy as the Council’s first permanent president, setting him up in his own headquarters just across the street from Mr Barroso.Lisbon, which came into force in December, was supposed to streamline the EU’s decision-making and make an unwieldy bureaucracy coherent. Yet the wrestling match over economic governance suggests that there is still more work to be done. In what has widely been interpreted as a bureaucratic elbow to the Commission, Mr Van Rompuy decided to move up his most recent task force meeting to this evening, during which he is expected to present his recommendations.Behind the scenes, both sides have been bickering about who has the upper hand. As the Commission never tires of pointing out, it — and it alone — has the authority to propose new legislation. But Mr Van Rompuy’s backers counter that the Council president was specifically deputised by European leaders to form his taskforce — the same European leaders whose approval will be essential if any proposals are to become law.The work has not been easy — particularly for Mr Van Rompuy, whose constituents have the awkward task of designing penalties that could one day be imposed against them. Just last week, the Council president was forced to defend his task force’s relevance at a European parliamentary debate after he was accused by the head of the European Green parties of failing in his leadership role.“We are being accused of working far too slowly,” he said, arguing that his work will actually be completed two months early. “We have taken some major steps forward, some huge steps forward, in fact.”Messy as it all might seem, this two-headed bureaucratic monster just might be effective, according to some contrarian observers. There is considerable overlap in the staff, with the Commission claiming its own seat on the task force. As such, the two camps have been keenly aware of each other’s work. The result is that the Commission has had the opportunity to test market its ideas to member states, and discover the limits of their tolerance, as they are being formulated. That could speed up the necessary compromises before proposals can become law. If so, then the only thing left will be to coordinate competing press conferences to claim the credit.
E ....... Mike Mish Shedlock reports Eurozone Recovery Slows; Contraction Evident Except Germany, France.
F ...... In a recent blog article, written on August 10, 2010, entitled An Unwinding Of The Euro Yen And Other Yen Based Carry Trades Will Lead To A World Wide Banking And Credit Breakdown, I wrote: “Economic growth did come by credit growth, which came by the neoliberal economic policies of the czar of credit liquidity Alan Greenspan. The economic growth was also driven by yen carry trade investing with currency traders borrowing at 0.5% from the Bank of Japan and investing in many markets.I believe that “debt deflation” will come to the minds of the currency traders, and that they will call emerging currencies, CEW, major currencies, DBV, such as the Euro, FXE, lower,.The stimulus of deficit spending and intervention of the Federal Reserve with TARP and other facilities, probably prevented a catastrophic deleveraging. But their measures have only postponed the deleveraging that is a natural process of debt deflation.Also the tragedy of the Federal Reserve’s facilities was that Bernanke effected a bloodless coup where he nationalized banking and integrated the banking system into the government establishing state corporate rule, that is corporatism. The chart of debt, that is the US Ten Year Note, IEF, Corporate Bonds, LQD, Emerging Market Bonds, EMB, Build America Bonds, BAB, Municipal Bonds, MUB, and Junk Bonds, JNK … IEF, LQD, EMB, BAB, MUB, and JNK shows a massive build up, well in fact a bubble, in debt. When the deleveraging of debt starts, those ETFs, especially EMB, and JNK, will see a rapid loss of value.I believe that currencies, bonds, and stocks, will all be falling lower together and that gold will best preserve the investors wealth.The deleveraging process will see stocks going off to the pit of abandon and bonds going off to the debt cemetery, there is such a great load of debt, it cannot be repaid. Business will shutter, and governments will cut way, way back on spending.There is also a great debt load on households as seen in MyBudget360 article Middle Class In Shambles More Debt, More Job Losses, More Deceit where the author presents the CMDEBT chart Household Sector Household Credit Market Debt Outstanding which shows how credit has grown since 1950 and now appears to be peaked out and turning down. Out of chaos, will come a new global order. National leaders and finance ministers will waive national sovereignty and announce framework agreements which establish regional economic governance where ”credit bosses”, act as seigniors in public private partnerships, that is combines of business and government, to provide credit, which will be issued for the security needs of the homeland regions. In Europe, I see a new role for the President of the ECB. I envision that in response to severe credit contraction and banking ill-liquidity, that he will be Credit Seignior, as he accepts sovereign and other debt and issues credit to Eurozone member banks thereby keeping some degree of money liquidity flowing.Government leaders will become seignior, they will exercise seigniorage and become the first, last and only provider of credit. Then only food stamps and strategic needs will be financed.When the people of Europe adopted the Euro as a common currency, and approved the Lisbon Treaty, they accepted Global Governance, and forsook national sovereignty and citizenship and now live under European economic governance where the EU State Leaders and Finance Leaders announced a framework agreement in May 2010 providing bi-lateral loans which is defacto seigniorage financial credit to the nation of Greece in order to stabilize the Euro and the European Financial institutions, EUFN. And 16 eurozone state governments have approved the EFSF monetary authority to issue eurobonds, with the money raised going to support distressed state governments. And defacto federalized banking exists with quarterly debt financing provided by the ECB to Eurozone banks to provide and sustain banking system lending liquidity. An unwinding of the Euro Yen and other Yen based carry trades will lead to a world-wide banking and credit breakdown.Since the writing of An Unwinding Of The Euro Yen And Other Yen Based Carry Trades Will Lead To A World Wide Banking And Credit Breakdown, I’ve taken an addendum position with insight coming from Tyler Durden.
Today, the Interest Rate On The 2 Year US Government Note, $UST2Y, fell lower, causing SHY, to rise above its August 24, 2010 high, “as ever more investors are shifting their purchase ever more to the right in anticipation of QE2” says Tyler.
A Surprise QE 2 is likely coming on November 3, 2010, which may very well as Mr Durden suggest, create and investment demand for US Government bonds; nevertheless, I still encourage an investment in gold.
Under Mr. Durden’s scenario, a person owning a mortgage will definitely seek to refinance the loan. Think of QE 2 as the ultimate HELOC, providing the best-ever, mortgage equity withdrawal
US Government Bond holders will sell their investment to the Fed, and a sane person will buy gold. And the poor people, like myself, will pray that they have money to buy food, traded by the agricultural commodity, FUD.
With QE2, the Fed will in effect own all mortgages. For those not underwater, it will be wise to put the house on the market at a sell-able price--and I mean a price substantially below market; get one’s equity out, and buy gold and go rent somewhere.
All associated US Government debt, like Municipal Bonds, MUB, and California Municipal Bonds, CMF, will be worthless. QE 2 will kill all state and municipal financing; the pink slips will flow like water from a fountain. QE 2 will end the municipal employment entitlement to a better than average job with outstanding benefits.
The dollar, $USD, will function in the US, for US products, but that is all.
In the ensuing global trade destruction, countries will create new alliances, leaders will announce framework agreements establishing regions of global governance, with of course, loss of national sovereignty. The Bank of International Settlements, BIS, will establish an international central banking system to serve as a global financial clearinghouse.
Yes, definitely gold, even though as EconomicPolicy Journal reports: The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved the issuance of a proposed rule to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act to provide depositors at all FDIC-insured institutions unlimited deposit insurance coverage on non interest-bearing transaction accounts beginning December 31, 2010 through December 31, 2012.
The world's economic, banking, commerce and trade, institutions will suffer a stroke, an apparent mortal wound when liquidity and credit breaks down, but through regional governmental credit seigniorage, banking will be revived; and at that time universal regulation of banking globally will be established, as called for Timothy Geither, and as reported in the James Politi and Gillian Tett Financial Times June 8, 2008, article NY Fed Chief In Push For Global Bank Framework.”
G ....... NeuroSoftware FinanceBlog reports Takefuji Corp, the third largest Japanese consumer lender, was limit down on the Nikkei, and was subsequently halted, on reports the company is preparing to file bankruptcy as reported by Nikkei newspaper.
H ....... Eric J. Savitz reports in Yahoo Finance and Barrons article October Could Be Tough on Tech Shares: Unfortunately, several things have gone wrong. While corporate spending continues to rise, it is unfolding at a more leisurely pace than many expected. With jobless rates stubbornly high, home prices still weak and household balance sheets under pressure, spending on PCs, digital TVs and other consumer-electronics gear has been disappointing. Meanwhile, there are legitimate concerns that the Apple, AAPL, iPad is eating into notebook and netbook demand; while that is partially true, more fundamental forces are at play. With earnings season a few short weeks away, there are signs that September-quarter results won't be as strong as expected—and that could mean a stormy October for tech shares.
CreditSights analysts Ping Zhao and Jordan Chalfin noted in a commentary last week that inventory in a number of sectors—including semiconductors, storage, PCs and distribution—has been ratcheting steadily higher. The analysts report that most tech sectors saw second-quarter inventory days rise from first-quarter levels—the opposite of the pattern a year earlier. The CreditSights analysts are particularly concerned about rising inventory at electronics distributors, warning that "any distribution inventory correction could have a negative impact to semiconductor companies' margins."
Bernstein Research analyst Stacy Rasgon also cast a hairy eyeball on the chip business cycle last week, pointing out in a research note that semiconductor stocks have underperformed both the Standard & Poor's 500 and the Nasdaq this year, despite earnings reports that until now have been "nothing short of spectacular, relative to expectations." But the Street has ignored those numbers, instead fretting over rising lead times, potential double-ordering, expanding inventory and overall demand.
Rasgon fears the weak performance likely has further to go. He notes the current earnings cycle in semis shows signs of aging; estimates, he says, actually have been increasing for the past 17 months. Negative earnings-per-share estimate revisions, he says, are only now showing up. And, he adds, buying chip stocks at the start of an "earnings rollover" historically has been a "losing proposition." Rasgon says that the best time to buy them has been about a quarter before earnings estimates bottomed, and that it typically takes eight to ten months to move from peak to trough.
This suggests the group will be a bad bet, at least through early 2011.
Susquehanna Financial Group analyst Chris Caso likewise wrote in a research note late last week that there is likely to be more bad news on chip fundamentals and that it is unlikely the group has bottomed. "We would like to see broader estimate cuts endorsed by management—and see stocks react well to those cuts—before being convinced that we have reached a bottom," he writes.
Caso warns that, during downturns, "the Street typically underestimates the magnitude of gross margin compression that occurs, which is likely the main source of further EPS downside across the group."
The rising chip inventories and slowing demand are a symptom of trouble higher up in the electronics food chain, such as recent signs of weakness in PC and TV demand. They also signal trouble to come from further down the supply chain, where the chip-equipment makers live. Bank of America/Merrill Lynch analyst Krish Sankar last week chopped his forecast for 2011 capital spending in the semiconductor sector to a range of 0% to 5%; previously, he had been calling for 15% growth. And, as chronicled in my Tech Trader Daily blog, he's just the latest in a series of chip-equipment analysts who have been cutting ratings, estimates and price targets.
In general, demand for chips and the electronics products that use them isn't as strong as many hoped three months ago. And that could make for some difficult days for tech shares in October.
Semiconductors are traded in ETFs buy SMH, XSD, SOXL, USD; the 300% inverse olf semiconductors, SOXL, fell 1.32% today.
I ...... Tyler Durden relates how POMO has been driving the markets higher: CNBC ( the infinitely more credible European edition ) has run a stunning interview with Cazenove technical strategist Robin Griffiths in which the banker discusses such taboo items as the Plunge Protection Team's intervention in the market for the month of September in a last ditch effort to keep stocks from tumbling following the horrendous August performance. First Griffiths dissects POMO: "One of the reasons [for the surge] is POMO: what happens is the Fed buys Treasurys off the banks, the banks put the money into the market ... That amount of money turns the algorithms up, then all the algo trading hits the market. Real life investment managers are not doing this buying. They know that equities are for losers." And the stunner: "The S&P is being effectively goosed up by the Plunge Protection Team - they can keep doing this for a little bit longer ... But according to me the April high will not break ... as ... all of those Keynesian stimuli did not work."
J ...... Tyler Durden reports on competitive currency devaluation, that is competitive currency deflation, in article Brazil Confirms What Everyone Knows: "A Currency War Has Broken Out"
K ....... Gregorty Katz of the Associated Press reports: “A wealthy British businessman who owns the company that makes the two-wheeled Segway has been found dead in a river in northern England after apparently falling off a cliff on one of the vehicles, police said Monday.
The body of 62-year-old Jimi Heselden and a Segway personal transporter were found in the River Wharfe and he was pronounced dead at the scene, West Yorkshire Police said. A witness had reported seeing a man fall Sunday over a 30-foot (9-meter) drop into the river near the village of Boston Spa, 140 miles (225 kilometers) north of London.”
Disclosure: I am invested in gold bullion