Gigem77

Option Trader Friday Outlook: Is the Dollar Going UUP?

Untrusting:
10 years ago GE was a 60 dollar stock. 5 years ago it was 36 bucks. Today it is 15 bucks and change. During that time, gold has run from 255 to 1100. So your GE example shows how gold beat a blue chip stock over 1, 5 and 10 year periods. There have been no stock splits since 2000 and the dividends have varied from 10 cents to 31 cents, in no way compensating for the devastating drop in price.

The same thing is true of the dow, the nasdaq or the amex. Over the past 1, 5 and 10 years gold has outperformed by a large margin. GE is priced where it was in 1997 showing that buy and hold investors like you are getting killed. I bet you still own Oracle from 80.

Option Trader Friday Outlook: Is the Dollar Going UUP?

"but the price of gold collapses like quite the house of cards as soon as anyone tries to unload their shiny bits of metal." This is hyperbole without any evidence. .

The eurobanks have been selling 500 tonnes a year for at least a decade and the price of gold has risen 400% over that time frame. The IMF just sold 200 tonnes to India and the price of gold went higher.

The rest of the piece can be likewise shredded.


Meanwhile, the dollar shorts are covering fast and the DXY is less than 100 pips above the year's low. www.reuters.com/articl...

The U.S. Dollar: A New Accord

Of the dollar bulls on SA, you make the best presentation for a short term pop higher. I wonder how many funds are already positioned for these rate decisions? The dollar is already nearing 74 and needs to get above 77 before it's a real rally. It will be interesting to see how this plays out.

Delusions of Debt

Great article... thanks

Options Trader: Friday Outlook

So copper and oil need to fall, the dollar needs to recover over 75 and housing needs to bottom. Well, that reminds me of an old joke about a couple of cowboys crossing West Texas. One says, "all this country needs is some water and a few good men". The other responds, "that's all hell needs".

Chinese oil imports just hit 8 million barrels per day. That year over year growth more than compensated for the drop in U.S. consumption. tinyurl.com/5wlpof

Growth in population and in the middle classes of China and India will keep upward pressure on commodity prices.

Bernanke cannot adopt the policies of Volcker without killing the banking system that he is trying to save. Ergo, the dollar is toast.

The fact that a failed former fed chairman can still move the stock market is an indication of how speculative and fragile it has become.

We pulled out of the recession of the 80's with massive new innovations in computers and communications. What's the basis for optimism this time? That's where I want to invest.

Inflation: Pass It Through

Historically, gold has been the watchdog for inflation. The price of gold is up 36% year over year and nearly 400% since 2001. It puts the lie to the BLS nonsense. And this indicator is understated due to the Eurosystem banks dishoarding gold at the rate of 500 tonnes per year.