Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (54763)	2/26/2006 4:42:41 PM
From: russwinter	Read Replies (4) \| Respond to of 110194

I observe correlations, and how different asset classes trade, and to me it seems gold is now pretty much the same trade overall as XBD or the Russell 2000. Therefore I assume some or even a lot of speculative leverage and hedge fund positioning is being used. A Chinese revaluation (I'd say 4-5% in March), a BOJ monetary shift (March 9), and ECB (March 2)and US (March 28) rate increases, or some combination thereof, may result in a serious correction or unwinding of these trades. Actual (versus anticipated) global liquidity is now very overrated and overplayed, even before this. idorfman.com At minimum, you may wish to temporarily step aside out of caution, and observe the reaction.