Good morning sheep! All of you with money in hedge funds, that gave money to your alma mater so they could speculate in hedge funds, and that bought BX on offering, the clippers are ready. Shearing of sheep can now start as all sheep are in the pen. This week they closed the gate, and got out the clippers. Sheep did get lucky in one case. Everquest Financial's IPO was pulled. (New York Times, 26 June 2007). This cunning scheme was to put a bunch of those questionable CDOs in it, and sell it to the gullible public. Such events as witnessed recently with a sponsor and two hedge funds may not be isolated events. Hedge fund/CDO situation perhaps suggests that problems with decision making, portfolio management, risk management, and ethical considerations are more systemic in nature.
Investors around the world are watching these financial shenanigans, and are selling dollar. Dollar is rolling over, as shown in chart, moving on to a path for a new low. Waning confidence in hedge fund management will exacerbate the situation. British pound at $2 says a lot about confidence U.S.$. Downward slide for dollar means intrinsic value of $Gold is rising. Tuesday, NYC funds pushed up U.S. stock market and sold off Gold and Silver in a sure sign of emotional and financial denial. Markets did not sustain their effort, with the stock market giving up most of gain and Gold finding the summer's bottom. Individuals should be using this selling to add to Gold positions, or begin a position. Remember. Gold investors have U.S. economy on their side. It sells $60 billion of dollars each month. Maybe those foreign central banks might want to invest their dollars in the High-Grade Structured Credit Strategies Enhanced Leveraged Fund. Some partnership interests just might be for sale.
GOLD THOUGHTS are from Ned W. Schmidt,CFA,CEBS, publisher of The Value View Gold Report, monthly, and Trading Thoughts, weekly. To subscribe to these publications go to http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html. June issue of The Agri-Food Value View, an exploration of unfolding agriculture and food investment super cycle, is now available. To receive a copy, write firstname.lastname@example.org.