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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (73474)	4/22/2011 10:33:54 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 218868

Brazil wants the Fed to fix the dollar by Staff Writers Rio De Janeiro (UPI) Apr 20, 2011 Brazil is piling public pressure on the U.S. Federal Reserve Board to fix the U.S. dollar which Brasilia says is undervalued and pushing the Brazilian real upward, creating problems for the economy. Brazil's bank deposit incentives and interest rates have drawn hordes of investors to the country, pouring tens of millions of dollars into the economy. The resulting appreciation of the currency, however, is seen as a mixed blessing as it threatens to squeeze Brazilian exports out of the markets, officials said. The solution lies with the United States, they said. Finance Minister Guido Mantega became the latest advocate of urgent U.S. initiatives to beef up the dollar and rescue Brazil from the unwanted attention of investors drawn to its buoyant money markets. Mantega struck an optimistic note, however, expressing confidence the Fed will soon act to rectify the situation. Brazil isn't alone in Latin America to complain about an undervalued dollar and appreciation of the national currency. Chile voiced similar concerns earlier over a soaring peso and potential detrimental impact on its economy as exports get priced out of world markets. "We know this story won't last long because the second round of the so-called policy of monetary expansion, quantitative easing, ends July first and I am hopeful there won't be Quantitative Easing Three," Brazilian media reported Mantega as saying during an event in New York. Mantega indicated financial markets are anticipating that, at the end of the second quarter on June 30, the Fed will finalize the current policy of reinvesting principal payments from its securities holdings and the purchase of $600 billion in longer-term Treasury securities, a policy described as quantitative easing, MercoPress reported. Mantega was upbeat about the dollar-real interaction, adding the government intended to continue with measures that would prevent "excessive" appreciation of the real. He also expressed optimism the dollar would rise. Since last year, the Central Bank has been buying dollars in different instruments, including the spot market, as part of the strategy to restrain the real. Brazilian President Dilma Rousseff raised the subject when U.S. President Barack Obama visited Brazil in March. Although Brazil thrived on rising commodity prices in 2010 and earlier this year, it found itself fighting inflation as domestic demand took off on the strength of a commodity price boom and the psychological impact of Brazil's emergence as a buoyant capital market. Analysts said that Brazil faced the challenge of not having sufficient numbers of market savvy financial players and raised the specter of mistakes in major financial transactions, with dire consequences. Inflation is estimated to be running at more than 6 percent. Published comments from analysts and Brazilian officials showed increased gaps and conflicting interpretations of how Brazil would check the inflationary spiral.

To: TobagoJack who wrote (73474)	4/23/2011 10:17:06 PM
From: pezz	Read Replies (1) \| Respond to of 218868

Well TJ a very balanced and diversified portfolio. Mine be much simpler.... All net worth be in thin speculative stuff minus enuff cash to live for 6 months

To: TobagoJack who wrote (73474)	4/25/2011 6:14:05 AM
From: alpine_climber	1 Recommendation Read Replies (2) \| Respond to of 218868

It seems as though you have squeezed 6.2% of precious metals out of your portfolio, at a time when prices have been going through the roof. That would imply you sold off most of your previous 15.2% paper metals, but the price rises in the metals compensated to squeeze only 6.2% of the total. This is of course counter intuitive to what the sheeple believe, and act on. Which begs the question where do you, the first bull ever, go from here? A 'smart' person might surmise that these historic price rises on all precious metals are only because the big players are finally getting into the game, based on 2 observations: - the USD is skidding against all currencies, esp Asian and commodities currencies (e.g. AUD, CAD, BRL and ZAR); and - the precious metals are rising consistently upwards. By the big players, I think central banks, SWFs, pension funds worldwide, and other institutions who were hitherto convinced that USTs were the ultimate and even only risk free instruments. I've been trying to get at the portfolio 'mix' of these institutions worldwide, even at an anecdotal level (eg buying/selling patterns), but can't find any. So, I would like to enquire whether you still believe there will be a major correction in precious metals prices, and other than Bernanke finally telegraphing interest rate increases on Wed., do you look for other signs for a major correction so you can get back in? In other words, as the undisputed leader/believer on precious metals, we'd feel far more comforted if you were back at the original recent, 35.2% or even much more....since the price rises alone would take you up some 3-5%!