As we all know, the Federal Reserve has two mandates: keep the inflation rate low (officially, they have an optimal rate of two percent) and try to keep employment at or near maximum levels. Because the extent of the recession has been so large and deep, in both of these measures, the Federal Reserve has…
For anyone who believes that resource bases selling for th cheapest values in over 15 years is likely to prompt consolidation, here’s our picks that are now half the price! Guess where we are on the investor sentiment cycle below… Looking at the bulletin boards – anger and despair are the dominant themes in this…
What with the largest short position in gold futures since 2001 (data from CoT stats), we now have news out of Bloomberg that gold traders are the most bearish since Jan 2010… From Bloomberg – Gold traders are the most bearish in 3 1/2 years after prices fell to the lowest since 2010 following Federal Reserve…
By now, regular readers will probably be tired of hearing about the value in Kaz. I won’t opine further, just simply relay the calculations below to those people how are talking it down to sub 200p. At the current ENRC offer price (which has been rejected of course), they will receive just under £600m in…
Societe Generale SA’s Michael Haigh correctly predicted this year’s rout in gold by using a math problem to measure a feeling. His arithmetic says there’s worse to come. Haigh’s algorithm, called the Principle Component Analysis model, uses 27 indicators ranging from the value of the Indian rupee to the yield on 10-year German bunds to determine what percentage of a…
Every equity trader’s friend Mr “Helicopter” Ben Bernanke stated yesterday the FED might start cutting on its asset purchasing program this year and eventually end it completely by mid 2014. The Federal Open Market Committee left its pace of monthly asset purchases unchanged at $85 billion as widely expected by investors, but made clear to…
Hedge funds and other large speculators are continuing to cut their bullish bets on gold as they position ahead of the Federal Reserve likely reducing its asset purchase program in just a few months time. According to the US Commodity Futures Trading Commission, net-long positions on futures and options contracts decreased by 4.1% as a…
