It all points to physical gold

Now that all asset classes including:

property
equities, mutual funds
bonds
cash/currencies/money market funds
commodities

have gotten hammered, and the US dollar has rallied due to mass redemptions of foreign investments, an optimal position is in physical gold and silver. The paper market of gold is 2.5 times the size of the physical market, and with the IMF and others selling [...]

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Gold headed dramatically higher

This deleveraging process has been a very unique one. Over the last decade, the Fed led many central banks around the world in an unprecedented expansion of money supply. While there is massive credit being withdrawn from the global system, the long-term effects of this money supply expansion has yet to filter through. Investors are [...]

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How to make money in this mess

In January of 2007, we made macro predictions about how to allocate assets for the coming 5 years in “Our Investment Calls for 2012.” Overall, our recommendations were pretty spot on as you can see from the table below.
One glaring area though where we were totally off is with interest rates. Boy, were [...]

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Credit default swaps (CDS) market in perspective

Click on graphic for larger view.

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Default swaps intensify credit crunch

February 11, 2008 (Rob Roy) – Over the past several years my firm has highlighted the risks in the sub-prime sector, the lax lending standards, and the housing bubble that peaked in 2005. The residual effects of these have been vast and continue to support our view that the unraveling of the debt issue is [...]

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2008 Market Predictions for Macro Investors

This is our “Market Predictions” post from January 17, 2007.  Other than declining interest rates (what is Bernanke thinking!), we were spot on with:

Gold
Silver
Falling US dollar
Oil
Natural gas
Agricultural commodities

The only other sectors we should have added to this list are (i) desalinated water and  (ii) clean and “cleaner” energy (such as solar, wind, geothermal, biomass).  [...]

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Wake up to the dangers of a deepening crisis

November 25, 2007 (Lawrence Summers) – Three months ago it was reasonable to expect that the subprime credit crisis would be a financially significant event but not one that would threaten the overall pattern of economic growth. This is still a possible outcome but no longer the preponderant probability.Even if necessary changes in policy are [...]

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Slowdown in Debt & Equity Markets

MarketWatch has an article today about the slowdown in both equity and debt capital markets.
$569 billion worth of deals were announced across the world in July, but that slumped to $227 billion in August, Dealogic data show.
This month, $99 billion of deals were unveiled through Sept. 18. That’s roughly $45 billion below the same period last [...]

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