Bernanke greenlights 50 basis points in January.
Let’s see how other asset classes responded.
EUR-USD went almost 1 percent further down the toilet. Thanks, Ben.
What about commodities?
Good so far …
Bonds fell –especially 10- and 30-year bonds. The bond market just doesn’t have very much political clout, apparently.
I think Bernanke’s real game is monetizing the (Chinese/ Arab/ Japanese) “savings glut.” But it means a lot more inflation is on the way, at least through Bernanke’s term.
Good thing I bought so much gold. Ben Bernanke’s inflationism has single-handedly dragged the Ron Paul-supporting, Krugerrand-clutching gold bugs out of their graves and jolted them alive with the mother of all defibrillators. I have tentatively termed it the “Bigger than Greenspan Put.”
For us gold bugs, life couldn’t get much better. Even the oil guys don’t have it as good as we do.
I can’t stand Bernanke, actually. But my portfolio still loves him.
Not sure what the problem is with Barrick (ABX). GG and RGLD are more than half of the total portfolio, and “down” just isn’t part of their vocabulary. GG has a stupefyingly high P/E of 96. (The others are around 45.) GG has beaten the S&P by about 70 points (!) since last May, when I first bought in. ABX, sadly, was a much more recent addition, although it’s still been good for something like 10 points’ alpha.