I want to start off with the “Walking Dead” U.S. Dollar. For the umpteen time the “Don’t Worry, Be Happy” crowd is ignoring a critical economic factor because the ramifications of it don’t fit into their “perfect” world. Make no mistake about it the decline of the world’s “current” reserve currency is far more important than any “green shoot.” Just like the American public paid little heed to the real estate and mortgage bubble, you can bet your sweet bippy they have no clue what’s happening with their terminally ill Uncle Sam paper.
For months now, we’ve seen and heard from around the world how key economic powers want to, or already have, moved away from the U.S. dollar. An even more important fact is how many world players have rallied behind the U.S. Dollar? If your answer is the same number of Vancouver Canucks Stanley Cup wins, you’re correct.
Don’t expect many in the regular financial media, main street financial firms (those who are left and have come out from their bunkers) and especially the Obama administration/Fed. In fact, I’m waiting for them to tell us what the last four administrations have said -“We’ve a strong dollar policy”. For the love of God pray they never employ a weak dollar policy (actually they don’t have to since we’ve have one already).
Meanwhile, the 10yr. Treasury did as expected and merely rallied to former support a little over 3%. I’ve little doubt that the first people starting to get a whiff of the increasing weakness in the “dead man walking” currency is the bond market. Stay tuned as this should get interesting in the days and weeks ahead.
Despite a knucklehead or two perma-precious metals bears who despite being wrong since 2002 on the metals continue to be quoted (I’ve been wrong but not for 7 years in a row. Unfortunately the media never bother to check how wrong these two characters constantly are. It’s not jealousy but I get questions about what they’re saying because people assume since their quoted they must be accurate-nothing could be further when it comes to JN and LK), gold and silver remain in a stealth bull market. This base has been building for months and a break out could be near.
The weak dollar has given a boost to oil and while my target of $60 has been touched, I continue to believe we’re overdue for a correction/consolidation. A close above the magical $60 could be the trigger.
Today’s volume was extremely weak in equities and the declining VIX number actually has bearish implications.
In regards to the model portfolio, CDE-NYSE was closed out today at $1.37 and KMK-TSX-V was added at $1.03.
Not surprising, many people were asking about Northern Dynasty today. I’ve to walk a fine line due to the fact that I’m a compensated consultant to the firm, I own lots of shares and I’m either going to receive lots of Christmas presents from friends and relatives or have lots of coal for the winter.
Today’s volume may be one of the highest since I came involve with the stock back under a buck. We also had the highest close in many months. I’m a broken record but how does 50% of the single largest undeveloped copper/gold project remain in the hands of NDM indefinitely? I said it before and I’ll say it again, IMHO how does Anglo allow anyone to acquire the other 50% for anything less than the cost they will incur to earn their 50%? Heck in this day and age anything possible but I suspect if and when there’s a bid, the first bid won’t be the last bid. Lets not forget NDM management has said on several occasions they were expecting a major financial transaction on NDM. That in itself was telling.
I failed to mentioned another critical factor regarding KMK-TSX-V. They recently announced a poison pill. IMHO, HD doesn’t do that as a mere exercise but who knows for sure? Shortly after I posted my KMK comments the company made this announcement. This is a very bullish development.
Finally, Anooraq Resources conference call today was most interesting. A recording of it should be available shortly.
For those of you attending the Vancouver Show in June, please note i will be doing a special Q & A right after the main show closes Monday night.
On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”. Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th, 2009.
….go to visit Peter’s Website.