More Thoughts to Ponder…

Of all the great advertising techniques, why doesn’t NASA get a corporate sponsor for its Space Shuttle?

Last week the uranium price suffered its first losing week in 47 months! I was wondering when this would occur. $80… $100… $120? And now it has. You never know when the hype will end, but one thing is for certain… it always does.

Quoted from FT “Now that the market had broken its recent shackles, investors who were not positioned for that move face having to buy back stocks, that could push the market higher.” And from where comes the notion that much of this rally was generated through covering due to margin calls?

The U.S. is begging China to buy some Government-backed Mortgage securities. Maybe the U.S. will buy some Chinese railroad bonds? Analysts are just having a ball with this one.

“Japan is already the oldest society in the world, shrinking since 2005. The population peaked at 128 million in 2005 and is expected to fall below 100 million by the middle of the century. If, as expected, Japan’s aging grannies and housewives raise the share of foreign assets in their portfolios from 3 to 12 percent over time, the yen must weaken further. It is the dying currency of a dying country — albeit a charming one.”

Its quotes like these that make me think, “Bottom?” And this is from a rather conservative standpoint considering the carry trade and all.

They say wars are fought over money and energy. Iran is starting up with both.

Buffett rumors send Hovnanian shares up” This is interesting because even if Warren was indeed considering buying a substantial stake in Hovanian because of its attractive value, that idea exists no longer.

Bear Sterns has announced that its two hedge funds are worthless. (no surprises here). It does bring into question the assumed reassurances that this subprime fiasco (as we believe it will soon be known) is “contained”.

This disconnect in the marketplace will last no longer. Soon, after the hedge funds fall, the agencies adjust ratings, the investors panic and fingers get pointed, no one on Wall Street is going to trust anybody for a while. (That’s when we buy… big).

Those at Kitco believe that a rally in the precious metals may begin sometime in the Fall (we have long held the same, as do many analysts). What is everyone waiting for? The longer they wait the sharper the rally is going to be. Cover your shorts!



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