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Where were you 6 months ago?
I was long gold and short financials.I sold all my gold on Monday morning at a profit. Why? I watched the bond markets and saw the Asians retreat to treasuries...like they always do in bad times.Treasuries rise in deflation (yield curve falls). Treasuries sink on inflation (yield curve rises). Gold holders ask yourselves - "I am right in the long term...but do I have enough money to beat the Bank of China?"
I hear you but where do you think the money will come from to pay for the yield on those treasuries? Especially now that the dollar is going up, doesn't that make the debt for more harder to pay back?
>Treasuries rise in deflation (yield curve falls)I don't get what you say, based on the following info. Could you please help me to understand your statement? TIA.US Treasury Bonds Rates Maturity Yield Yesterday Last Week Last Month3 Month 1.59 1.59 1.63 1.736 Month 1.79 1.80 1.85 1.942 Year 2.18 2.16 2.25 2.543 Year 2.03 2.02 2.09 2.395 Year 2.88 2.85 2.94 3.2610 Year 3.61 3.57 3.70 3.9930 Year 4.21 4.18 4.32 4.61
" beat the bank of china"......dude, you are a sharp guy. We should talk. Email me at my yahoo address with same handle as here. Maybe we could make money together. I am working on a few ideas.peace, Marc