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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (8094)	2/28/2008 7:19:34 AM
From: SliderOnTheBlack	Respond to of 50466

The 2nd wave of buyers are getting on the bus... I commented yesteday about "having an exit/profit taking plan" for each interim trading leg, which a catalyst in mind that will bring in the next wave and class of buyers: Message 24351231 ["When you anticipate a move, when you buy in early - you need to have a plan as to who you are going to sell to at much higher prices) and what catalyst will cause them to pay much higher prices. There is still a MASSIVE amount of cash on the sidelines, and fund managers who have little or no exposure to commodities, must now buy exposure to match peers who do. And you are witnessing one helluva lot of "OPM" being thrown around doing just that."] ======================================================= The next wave of buyers that will come into gold and commodities is the professional fund managers who do not have peer exposure to commodities and who will throw massive amounts of OPM (other peoples money) at both gold and commodities - because that is their mandate: Peer and/or benchmark performance. Rationality, valuations, and common sense will never enter the equation for those playing with OPM. The NASDAQ bubble at 5,000 is a great example of that. As CNBC reported this morning - here comes the institutional players like Calpers who must gain more exposure to commodities: bloomberg.com Calpers to Boost Commodity Investments Through 2010 (Update1) By Saijel Kishan Feb. 28 (Bloomberg) -- The California Public Employees' Retirement System, the largest U.S. pension fund, may increase its commodities investments 16-fold to $7.2 billion through 2010 as raw materials prices surge to records. ====================================================== One other thing to keep in mind - is how different this gold/commodity market is from the last great gold bull run that peaked in 1980/81. Today's investor/trader/speculator has many, many, more choices. ETF's have forever changed the landscape, as has the age of online trading and 24x7 global markets. Volatility will only get more severe and the inside players will use volatility to their advantage more effectively than ever before. If you think the shakeouts of May 2006, or August 2007 were severe... just wait. ...and remember, the single most valuable commodity in this market - is information. Moflation, mo later, S.O.T.B.