Posts from ‘December, 2009’

The global financial crisis unwind continues! In disbelief to many the trends in financial asset classes that began late last year/early this year are reaffirming themselves. Last night the equity and real estate market (VTI & IYR) closed at highs for the year. During the course of the week the US Treasury market broke to [...]

With the recent fall in gold, silver and crude and the strength in the USD Index the deflationists have crawled out of their cobweb hollows/dens as determined as ever to put forward that the US is locked in a deflationary spiral.

We find it hard to accept a deflationary scenario when inflation premiums on the US [...]

The action of the CRB Spot Raw Industrials index and long dated US Treasuries suggest that this is a fantastic buying opportunity for crude oil, gold and silver and the broad commodity group in general! Yes we are well aware of the recent weakness in crude and precious metals but we think this weakness is [...]

The action over the last week or so has been within the US Treasury market. Finally it seems to be behaving as we would have expected it. So far the US Treasury has had little trouble in attracting investors (sheep) for its record debt auctions to fund the government’s spending binge. Foreign dollar holders [...]

While the FED, US Treasury and the deflationist camp are continuing to suggest there is little risk of inflation (albeit inflation getting out of control) in the “foreseeable future”, the bond market itself (the crowd) is beginning to suggest to the contrary. Whichever way you look at it, spreads between the yields of long dated [...]

We must admit that we held our breath over the last few days! It seemed as if Friday was going to be the tipping point as many analysts had pointed out. The media in its various shapes and forms were not going to let the Dubai World default go and played it for all it [...]