Dame Daxx

Is Gold A Sucker's Bet?

China said last month that it intends to diversify its foreign exchange holding, adding to Gold. Among the areas forecast for the greatest growth in are the Middle East and India, both areas that have an historic affinity for Gold.

Gold is whack and it's never going back.

Why Commodities May Be Nearing a Turning Point

I think we're seeing a differing performance between Commodities and Commodity Stocks. The performance of Commodity stocks in the past 4 months has been far worse than Commodities themselves. I suspect this divergence is what is causing problems for hedge funds, and as they liquidate their positions they exaggerate the disparity even more. I think that's what we're seeing this week.

What's Behind the Slide in Oil and Commodities?

Terrific article.

@peteF, get some Ritalin.

Barron's Goes Bullish on Banks, Again

Maybe an intermediate bottom in a secular bear market in financials. Citibank's stock is still where it was about 10 years ago. I expect to go long the XLF or the UYG this week, for a 6 week or so trade, but I'm not calling a bottom in a secular bear market just because of a short covering rally in a deteriorating Macro environment.

Barron's Goes Bullish on Banks, Again

Meanwhile this from the BBC today:

"The chairman of one of the world's most powerful banks has warned that house prices in the UK and the US are likely to fall for another two years.

Sir Win Bischoff, the chairman of the US banking giant Citigroup, has told me that he expects it will take two years for these markets to find a floor. "

tinyurl.com/59vphj

If the housing market will continue to deteriorate, and consumer credit along with it, I can't see how they can call a bottom in Financials.

Headwinds for Gold?

The Indian Rupee has fallen against most major currencies in the past few weeks, even against the dollar. India accounts for > 30% of world gold demand, so this is another hurdle for gold.

I prefer Platinum.