July 03, 2006

Inflation and cheap money

Posted by blogger at 7/03/2006

6 comments:

blogger said...

FYI HP'ers I'm buying $25k each of GLD and the Euro ETF today. Ben blinking is bad for the dollar (and bad for me living in the UK!)

I also think stocks may short term rally, although Israel and Iran situations may dampen any of that. Also, Mexico market could sell off if the race there does a US 2000 thing. So EWW is on short radar.

Also FYI on my SOLD puts, mocked here when I placed at $10. Well SOLD is already down 30% in a couple of weeks! And going to $0. Hello Zillow, goodbye SOLD.

Bought some CROX and VLCM too - small bites to hold for a decade or until they're acquired, which may be soon.

Still holding Home Depot shorts, and my small longs - ebay, yhoo, aapl, sbux, ewj, ewc and my big 2012 COP's (nearing an all-time high again).

Thoughts?

July 03, 2006 10:18 AM
Anonymous said...

I don't understand the trust of paper. If you want to own Gold buy Gold. With the recent news that central banks don't have the Gold that they say they do, you have to wonder who will get left holding bad paper? Can you convert this paper to Gold? When the going gets tough I own water, not a paper statement that says bank ABC has my water. In my opinion these ETF's are good for speculating, something that I wouldn't do in a manipulated market.

July 03, 2006 1:53 PM
Roccman said...

Tom - I agree - take physical - not paper. Some reports I have read indiacte 2/3rds of gold market in overbought.

July 03, 2006 3:42 PM
Anonymous said...

1)because the money might be in an IRA
2)because its not going to be the apocalypse but gold will go through the roof as inflation does

hedging on the cycles is different than betting on global meltdown i think.

I happen to have bought 100 shares of GLD this morning as well.

July 03, 2006 7:05 PM
Out at the peak said...

For some reason, half of my limit sell orders are gone from Scottrade today.

Anyway, that video is good and should be seen by the masses. It explains in simple terms how we are possibly f'd with the non-stop printing press.

July 03, 2006 9:54 PM
Anonymous said...

I also bought some SOLD puts which are doing ok. My fovorite puts are WCI and CORS. The home builder WCI is focused on FL and depends on CONDOS as its high margin area.

CORS, a Chicago bank, has and still is loaning agressively to Condo developers in the hotest markets. Now its running in to trouble finding deals and soon will have to worry about defaults. I am buying mostly Dec 25 and 30 puts.

July 04, 2006 2:10 AM

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