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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: onginvester who wrote (84971)	5/21/2007 1:58:13 PM
From: Keith J	Read Replies (4) \| Respond to of 206321

10 year bond is creeping higher, but still quite a ways away from the 5.2% yield last summer. I am somewhat unsure what to do here as well. Might look at some hedging - paired trades - like XOM short (or puts) and COP long (or calls), for example. Should AMZN really be selling at 54x 2008 earnings estimates? KJ

To: onginvester who wrote (84971)	5/21/2007 2:06:05 PM
From: ChanceIs	Read Replies (1) \| Respond to of 206321

>>>....China is pulling 400bil in US treasuries and putting 3bil with private equity.<<< Thanks, that is crucial information. It is a little suicidal on China's part, figuring that they may lose on the currency what they may gain in appreciation. Of course the American private equity firms have been known to take large positions abroad. You don't suppose that $3 billion is a sop to the Kennedy and Schumer do you???

To: onginvester who wrote (84971)	5/21/2007 3:24:08 PM
From: ChanceIs	Respond to of 206321

Commentary: Great Wall Of Cash To Follow Blackstone Investment DOW JONES NEWSWIRES By Tom Bemis LONDON (Dow Jones) -- China's acquisition of a stake in private (for just a little longer) equity firm Blackstone suggests that the paltry returns Beijing's been getting on U.S. Treasurys are no longer enough. The amount involved here, single-digit billions, is trivial when compared with the $1 trillion in spare change lying around Shanghai and Hong Kong. OK, maybe it's really more of a judicious "friends and family" allocation by Blackstone to China than any kind of heavy-duty strategy shift by the Chinese. But anybody in the U.S. with any kind of business plan should certainly be paying attention, because there's plenty more cash where this came from, and the Chinese can't keep building infrastructure forever. There's hardly enough concrete and rebar in the world to sustain even the current building boom. Still, this is the kind of moment that gives one pause, at least anyone old enough to remember when it was a very big deal that the U.S. and China had started playing Ping-Pong. So what will the Chinese government buy next? Trophy properties, perhaps? Pebble Beach? Rockefeller Center? Well, they could, but Japan's history with those sorts of things 15 years ago offers a cautionary tale, for anybody who has time to listen. Back then, whenever another U.S. property was bought by dollar-rich Japanese investors, many a mournful headline appeared in U.S. newspapers -- they still had newspapers back then. Each acquisition was seen as proof positive that the U.S. was failing, and that Japan would continue its inexorable rise to economic dominance. Alas, for Japan, the Tokyo real-estate bubble burst, the economy went into a really long slump, and the power of demographics eroded any chance it might have had to compete with the newly released economic forces of China. So, while giving all due credit to those responsible for diversifying China's billions into U.S. investment opportunities, it's one thing to make fast money, and it's quite another to figure out how to hang on to it.