Stay the Course

The long dollar / short T-Bond trade still looks like the long term trade we outlined some time ago.  Short gold still looks good as the long dollar situation will maintain pressure on gold.  The short S&P trade is the one that has to be continually watched. In the unlikely event that the Democrats do a sweep of the presidency and congress the short S&P trade may be in trouble, especially if someone with a brain replaces Geithner in a second administration.

For the third quarter to date our positions have increased in value by more than 10 percent, but that still leaves us down for the year as fighting Bernanke had its cost.

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