Back in May -- CME lowered Margin Requirements --- insane !!
Speculative investors in the benchmark 100-troy ounce gold contract can now deposit $6,600 to open a position and maintain $6,000 of that to keep that position overnight. That's down from the previous initial margin of $7,150 and maintenance margin of $6,500.
meaning you only need to maintain $6000 to have exposure to $130,000 in GOLD (100 oz at $1300.oz)
the margin requirements on equities are much more sane !!
Money continues to flow into Passive Index US Equities....
on their way to 100M + Unlike the Cable Companies that are geographically constrained and losing subscribers - NFLX continues to push Globally - there are huge tailwinds for NFLX -- from a technology push and growing middle class globally.
agreed NFLX's ARPU will continue to grow - much like the early Cable days --- as they add new content, new channels, new services -- and unlike Comcast and Time Warner their growth in not geographically constrained. 50 Million Subs -- on their way to 100 Million -- on the back of 4G LTE Mobile Devices, Tablets, Smart TVs and Ultrabooks adoption.
others say $850... we shall see, the over leveraged Gold market burst it's bubble in 2011 - stand clear - especially during a period of rising rates, and a rising US $
Stick with high quality Technology, BioTech, Consumer Product names in the US -- many of whom dominate the world.
summer binge watching - post Emmy nominations - end of World Cup - TV Season on Hiatus
the over leveraged Gold Market continues to unwind - that bubble burst in 2011
as the US Economy continues to recover from the "GREAT RECESSION" -- Rates will edge back up- and the US $$ will Rise --- and that will continue to push gold prices lower.
Money continues to flow in the US Equity Index funds -- large cap Tech names to benefit
As the economy continues to improve, rates will rise, the US $$ will rise and GOLD will FALL ---- continue to overweight US Technology. As money pours out of BOND funds into US EQUITY INDEX funds..
Yet according to Duke University finance professor Campbell Harvey, one of academia’s Leading Experts on gold prices, the odds are poor that the metal will return any time soon to its all-time high in August 2011 ---
He puts gold’s fair value today at a little higher than $800.
If you believe that yields will on average be higher in coming months than where they are today, as he does, then “gold will most likely decline”
Sell GOLD and stay long US Equities
Nearly $3 Billion in Free Cash Flow
net DEBT Free
150+ Million Subs with rising ARPU over the next 3 years - new services, new channels + base price increases.
Technology tailwinds -- explosive growth in streaming devices ( Mobile Phones, Tablets, TVs, Set-top Box) at faster and faster speeds.
Even Disney -- a content provider and broadcaster turned to Netflix to distribute its products.
Clear takeover candidate -- by GOOG MSFT AAPL
Tort reform !!! All the useless expenditures ! Rich Immigrants will gladly buy land !! There are millions of millionaires who want into the US - open the doors ! Dod cuts across the board 20% reform the Prison System - more small biz lending vs student loans !
DoD - cut spending, sell prime lands in California, cut and overall healthcare spending !! The US spends over 17% of its GDP on Healthcare - the rest of the G7 is around 11% - the do consumption taxes !! Alcohol, cigarettes, gasoline, VAT ? Lots of opportunities.
Spend less !! Not just government - people !
Tech, of course you know that is not the only way !! You are not that naive - raise taxes, cut spending, sell assets. You just cannot admit - you have been dead wrong for 3 years.
6.1% unemployment ! interest rates and the economy are going UP -- US $$ will rally and GOLD will plunge ! stay long US Equities.... Happy Days are coming back to the US !!
the US dominates - Technology, BioTech, Media/Entertainment, Planes, Auto, Consumer Products