Lotta Ins Lotta Outs: What a Day and Operation Twist 2

Disclaimer

The information contained in this communication is provided for informational purposes only and has been obtained or derived from sources believed to be reliable. No representation or warranty is being made, express or implied, as to the accuracy or completeness of such information, nor is it recommended that such information serve as the basis of any investment decision. This report contains forward-looking statements that are subject to change. Forward-looking statements involve inherent risks and uncertainties, and the predictions, forecasts, projections and other outcomes described herein may not occur. A number of important factors could cause results to differ materially from the views and opinions expressed herein and there are no guarantees of return. This material is not an offer to sell or a solicitation to purchase securities of any kind. Before making an investment of any kind, readers should carefully consider their financial position and risk tolerance to determine if such investment is appropriate. Mr. Jurgensmeyer may allocate assets to positions described herein and reserves the right to enter, modify or exit any such positions without notice.

Tuesday, August 9, 2011

What a Day and Operation Twist 2

Well, that stung a bit. What an awful day in the markets, unless you owned physical gold. Yes, I'm up at 3am writing. After the last week it makes it kinda hard to sleep. In a short term positive for the market, I expect The Bernank to announce a version of QE3. I'm guessing it will be called Operation Twist 2. I've spoke about this in my blog before, so I won't bore you with the details. It will be another aspirin, that wears off. I'm hoping they announce it so everyone can lighten their equity positions on the bounce. It's always trouble when everyone moves from one side of the boat to the other. That is what we've seen over the last 10 days. Yesterday was the 6th worst day in the history of the Dow. I had some negative articles, but decided to make this post funny.

Here's to hoping for a better tomorrow!

*************************************************************************************

College Humor is a great website for a laugh. And who doesn't like talking babies?

***********************************************************************************

So my new favorite comedian is Remy. Any time I need a good laugh, I've been listening to one of his parodies. Here is a funny, yet accurate, poem on Abraham Lincoln.

***********************************************************************************

Shocker: JPM Sees Gold At $2,500 By Year End

We though we had seen it all... Then JPM's Colin Fenton came out with a prediction of gold hitting $2500 by year end. That's right: JP Morgan... $2500...."Gold and sugar have potential to run a lot higher. It has been clear for weeks that the prompt CMX gold price has been building in a rising probability of a reflaring of financial crisis, gaining by 9.7% since June 30 as the MSCI World Equity index dropped by 10.1%. The correlation in daily price changes between these two assets has dropped to –0.09 from +0.29 over the prior year. Gold’s correlation against TIPS has doubled to 0.35 from 0.18. Against Italian and Spanish 5-year sovereign CDS prices, the gold correlation has moved to 0.27 and 0.32, from 0.07 and 0.04, respectively. Before the downgrade, our view was that cash gold could average $1800 per oz by year end. This view will likely now prove to be too conservative: spot gold could drive to $2500 per oz or higher, albeit on very high volatility." Funny, when discussing yesterday's Goldman upgrade of gold we said: "Next up: everyone else." Little did we know... Also, it is unclear if Blythe precleared this client note. But at this point it probably does not matter.

***********************************************************************************

One last parody because I couldn't resist. I would guess that 50% of the people on Earth have played Angry Birds or heard Adele. Why not put them together...