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| The markets represent a great deal of enjoyment for me. In 1971, the gold bugs preached doom and gloom.....it took the Hunt Brothers to try and control the market to see the $800 level. I recall, at their invitation, going out to O'Hare to look at one of the 747's they were chartering to bring the gold back into the US....B Hunt had way too much money (at the beginning)...on the day Mt. St. Helena blew up I was attending a board meeting in NYC (a major brokerage co.) & overheard the various conversations there and at the club later over drinks relative to "liquidation only"to protect the equity of the brokerages...I know what the system can do....just like the bank bail-outs...therefore, I want nothing to do with gold. It is not a good investment in my opinion. "Things" are a much better investment, in my opinion. Gold could well go to $2000, I do not care...all I see is the experts have "loaded" everyone up to the eyeballs with gold and it sits there.
I remain long a few hogs and cattle...I am prepared to see hogs drop another $5-6 per cwt as we have finally reached the flush stage. The hog market represents a considerable demand for corn & in order to get the independent back into the market...it is going to require some established profit to access financing absent a lot of balance sheet equity. As I mentioned a few days ago,,,corn is treacherous...the breakaway gap was filled easily....too easy.
Soybeans do have a story. However, the road ahead may be rocky. There are rumors in the market place the employment number could well be revised tomorrow representing possiblel shocking numbers...I do not know....it is just speculation. The other thing I have in the back of my mind, the Fed and Treasury could well bite the bullet...and let the dollar plummet in order to export the inflation....this would be a risky move...but the rest of the world owns a lot of dollars...what are they going to do? Sell?? I suspect they may well decide to use dollars to purchase more usa assets, SHOULD THIS OCCUR.
As far as posting, I try not to extend advice....I may be in and out of the market several times a day...but I do have a long term plan. We face a rocky road....but, It will eventually turn as I will never underestimate the ingenuity of Americans. Time and time again, in spite of politicians and governments, we've pulled the acorns out of the fire.
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Thoughts
