Dow = best sept. in 71 years! Dollar = worst since the 2008 fall..coincidence?

peilthetraveler

peilthetraveler

http://www.dailyfinance.com/story/investing/the-dow-notches-its-best-september-in-71-years/19655666/



http://www.bloomberg.com/news/2010-...us-euro-on-fed-debt-purchase-speculation.html


In this video Peter Schiff tells it like it is. He compared commodity prices to the dow and said that the rice in his cupboard out performed the dow. The frozen concentrated OJ in his freezer outperfromed the dow and even the cotton in his jockey shorts outperfromed the dow.

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it's a bear trap going into september...most pros were short going into september.

this is one of the most volatile summers in market swings..normally summers are quiet and flatlines this summer since may 6 crash is f#cking psychotic. or going insane. it's a symptom of high leverage from the ES futures which are the market now...everybody trades the ES where as in the 90's very few people trade index ES futures..pros all trade futures for tax reasons..and because of the leverage it makes the market very unstable and shakey and volatile and wild swings..

most pros trade index futures an ES is the prefer instrument...tax advantage higher leverage and no screwing around with HFT in stocks etc. there are no market makers in the ES futures or need market makers..it is so liquid. the ES is the market. whereas it used to be a 'derivative' now it is the market . stocks now are derivatives.

anyone who is 'profitable trader' would not trade stocks and trade ES futures instead..why pay more tax and tie up more capital and it's easier to do taxes too?

'normally' summerjune july august,, september october are dead months for equity than you get the santa clause rally nov dec. these aren't normal markets..it's highly illiquid. 50% drawdowns or slippage for equities easily whether you are long or short.


Quote from peilthetraveler:

http://www.dailyfinance.com/story/investing/the-dow-notches-its-best-september-in-71-years/19655666/



http://www.bloomberg.com/news/2010-...us-euro-on-fed-debt-purchase-speculation.html


In this video Peter Schiff tells it like it is. He compared commodity prices to the dow and said that the rice in his cupboard out performed the dow. The frozen concentrated OJ in his freezer outperfromed the dow and even the cotton in his jockey shorts outperfromed the dow.

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"...it is going to be an inflationary depression which will be that much more painful for everybody!"


"have a good weekend everybody!" - Peter added.

:D
 
he seems resigned to the fact that the dollar is doomed. sounds like his strategy is to short dollar and/or go long commodities. not clear what his exit strategy is given the inevitable depression.
 
Quote from psytrade:

His funds were down 50-70% in 2008. Lets hope can cook.
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So was everyone elses. Even Buffet was down that much in 2008. Peter has come back though. Funny how he made money every year for the last 10 years but people only focus on the year he lost money(even though everyone else lost too)
 
Dude, the only reason those assets he's making money on are rallying is because the dollar is falling. Its not a strategy, its a single trade!

You don't see me running around on youtube, or going to conferences saying, do this one trade and its all good....

He looks foolish if you actually believe and practice risk control and real contrarian style investing.

And if you actually fancy real contrarian trading, with nonlinear, asymmetric payoffs, there are definitely people more qualified then Schiff and his little fishfry.
 
When does a falling dollar and surging commodity prices break the economy?

Something has to eventually give. You cannot gave surging commodity prices and a happy consumer, those don't go well together.
 
Quote from S2007S:

When does a falling dollar and surging commodity prices break the economy?

Something has to eventually give. You cannot gave surging commodity prices and a happy consumer, those don't go well together.
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When people stop paying their mortgage to buy food.
 
Quote from peilthetraveler:

When people stop paying their mortgage to buy food.
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hmm...seems many people have stopped paying their mortgages..except that the money is being diverted towards more frivolous items. On the other hand, I'm certain a decent sliver of the population has figured out how to simultaneously stop paying their mortgage, collect food stamps and get paid 99 weeks of unemployment compensation. On the side, I'd bet they do some under the table work as well.

This "whatever you want to call it" economy is doing its best to take out anybody in between the two extremes or wealth and poverty.
 
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