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Bonds, Gold & the Euro
October 16th, 2008 at 9:15pm · 1 Comment
Everything’s gong down together. The recommended bond short has done well. The recommended gold long started off in the right direction than headed south somewhat dramatically. I want to hold onto the bond position but not gold. The channels suggest gold could reach 750 before finding some support. The selling the euro continues and that it’s near the bottom channel should only suggest a pause in its downtrend. The lower channel for bonds is way down at 110 11/32. While U.S. government securities are acting as a safe haven of sorts, the willy nilly throwing of money at every financial problem will impact treasury prices in the long run. And I think the long run is now for the 30-year bond, while the day of reckoning will come later for the notes, bills and shorter maturities in general.
1 response so far ↓
1 mtrevillian // Oct 28, 2008 at 11:11 am
Chris,
I enjoyed reading your June report, Inflation, Deflation, Youflation. Given your view that deflation is the primary trend for the next year, why aren’t you a bond bull?
Thanks,
Malcolm
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