Tuesday, November 9, 2010

Still Alive...

Wow, been a long time.  Sorry for the prolonged absence but the bulk of my extensive readership has been kept up-to-date via email for the past few months.  When last we spoke the European stress tests made us money, now it's Helicopter Ben who will put the final nail in the deflationary coffin.  QE2 was not only foreshadowed, but Ben himself defended his actions by pointing to a rising stock market as proof of its effectiveness.  Since when is our chief economist mandated to prod the market?  I thought it was money supply and employment.  Hmm.

Since our inception we have pointed to gold as the ultimate inflation hedge.  Just this week the head of the World Bank has called for a return to some form of gold standard.  But gold is only part of the answer.  Silver at 30-year highs.  Cotton, coffee, corn, name it, at multi-year highs. The concern always becomes are we in a bubble?  With an explicit policy of currency devaluation, the answer is no.  Faber, Janzsen, and Fleckenstein all think the dollar is going straight to zero.  The other side of that has to be commodities, priced in dollars, as the hedge. The market should rise for the time being as well, but my money is going 3 places:

SLV, GLD, DBA calls to at least 2012.  


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