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Big4 Asset Allocation Models ask: Is the Eternal Constant Overpriced?
Aloha All
Only one Rupert Murdoch Cramerica Kansas Wall Street Journal headliner sees lower gold prices.
One publick goldilocks bear does not a runaway bull market inflation make.
Mad Money Cramer is bullish on gold, if that is a clue.
All other Gold headlines today were bullish on Google News, a contrary indicator.
Dallas Texan Kyle Bass made billions quietly shorting Subprime Mortgages.
He’s 50% long medium term credits and mortgages, 25% long junk bonds, with nary a mention of gold.
The Big4 are also long 2, 5 and 10 year T Notes like Kyle.
The Big4 are actually 33% short and 16.8% long gold.
Gold is still below the high of $1033 in March of 2008.
Gold is more than half below the $2300 inflation-adjusted gold high of 1980.
There may be a curious zombie bank bailout fear of surprise inflation, but where is it, with everything but gold down?
The banks are buying Treasuries and hiding out for leveraged cash flow.
They are not lending to grow the economy.
Gold rose the last 8 years on repeat rumours of Armageddon style attacks on Iran for messing in the Iraq War and sponsoring terrorism.
Our leaders called it freedom fighters when we spent $400 Million to covertly attack or destabilize foreign regimes like Iran.
