Global Panics Just Not What They Used to Be

In a perfect world, the Dow might have plummeted 500 points yesterday while gold and silver took flight like bats out of hell.  Oh well. Sometimes you just have to take what you get. And what we got was a merely moderate selloff in the broad averages accompanied by commensurate weakness in bullion.  Actually, weakness was the story across-the-board, affecting nearly all classes of investment assets. The disinterested observer might have inferred that traders and speculators around the world (investors have become extinct) were strongly in sync, spooked by China’s apparent desire to rein in growth, but also by the re-emergence of critical financial problems for Ireland and Portugal.

Assuming investors were indeed of a more or less singular mind – and my apologies if the use of the word “mind” here has offended anyone —  it’s a bloody wonder that U.S. stocks didn’t get pulped. But they didn’t. And although sellers seemed to have had little trouble pushing the Industrial Average down by 200 points, the index seemed hostile to the prospect of giving up any additional ground. At its intraday lows, the Dow was down around 223 points; but most of the day it hovered well above the lows, down 180 or so points (which is where it closed).  Some might have sensed the hand of the Plunge Protection Team in preventing a rout. Perhaps. But who needs a PPT when just a small trickle of liquidity from a glutted banking system can propel shares skyward on any given day? And let’s not overlook the fact that, other than Kudlow,  there are no individual investors in the stock market any longer – only institutional hacks charged with deploying OPM to stay weighted in stocks, even if the earth should open up and swallow Manhattan, Chicago and a few other money centers.

Over Before It Began

Meanwhile, and as we’ve come to expect, most of the ground lost by U.S. shares was lost in the opening minutes of the session, making it very difficult to profit from the move unless you’d gone home short the night before.  From a trading perspective, the day was mostly over before it was two minutes old.  Permabears should keep this in mind if they expect to reap windfall gains when the stock market finally does the Right Thing and collapses in epic fashion.  It’s going to happen so quickly that the event so many of us have been awaiting…nay, expecting…since 1987 will pretty much be over before we’ve gotten out of bed.

Preparing for the Big One becomes even more complicated when you realize that the reasoning behind yesterday’s selloff was rubbish, as it so often is.  The conventional wisdom had gold and silver falling because China is talking about dampening inflation. But who cares about inflation at the relatively trivial level of manufacturing, exports and domestic consumption when hugely larger forces – namely a quadrillion-dollar financial shell game – are at play, threatening to expose the world’s currencies as worthless IOUs?  Our advice is to hold onto your gold and silver while the imbeciles and bad guys who control the markets duke it out, second-guessing each other to the point of exhaustion.  Nothing has changed, really, and whatever assumptions we were operating under just a few short days ago still obtain.

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  • DG November 17, 2010, 6:46 pm

    So how do we explain horribly managed currencies, like the peso or Z-dollars, and their stock markets are through the roof? Mexico has been in decay forever. Yet look at its stock market prices. Jefferson was a great and I believe, accurate, thinker….but even he got wiped out by currencies with debts he inherited in pounds when dollars got debased…currencies are everything as they are the instrument of measurement. You can get nominally richer and actually poorer very easily.
    This will end badly. The only sure thing in my mind is hard assets without debt. Conflict with our creditors is a certainty with the current path, and who knows what that will produce regarding the equity markets…(or when)

    On the point of winning WW2 because of the ability to create money….one could also argue that Germany never would have become a power if they weren’t able to have borrowed so much in the first place. That all began in WW1, and never really stopped, just went through phases. One can easily argue that fiat money creates unnecessary conflicts. If we were forced to have fiscal discipline we would never have taken on Vietnam or the Middle East. But we did and have and the result is the same – inflation. (oh, and no spoils to the victor)

    • roger erickson November 17, 2010, 9:00 pm

      I explain it as the fact that contexts change, and only those that figure out how to surf them are selected to survive.

      it wasn’t “ability to create money” per se that allowed our phenomenally rapid rise in productivity during WWII – it was our ability to denominate required real transactions. Never, ever, let bookkeeping get it the way of what needs to be done. Face it. We did that, and other countries didn’t.

      In the end, no group, tribe or nation “borrows” the right to accurately denominate their own initiative. Currency is created as a bookkeeping tool, but it can easily end badly IF people forget how to use it.

      see “Public initiative and the beginning of US currency: A confused electorate can end up pretending to borrow it’s own currency, instead of creating it?”

      even these guys get confused about commodity vs fiat $, but they’ve compiled some very informative historic references

  • DG November 17, 2010, 5:33 pm

    The thing that confounds this process is the “money printing” factor. I know folks like to go to the extreme and point to Zimababwe as the bad example in the class – an easy argument to dismiss. “It’s Zimbabwe”
    But limit theory is valuable, and that is likely what Zimababwe is. In the Zimbabwe experience the stock market went up even as the economic situation got worse.
    I think we are off the rails and straight logic needs to be multiplied by the “money printing” factor.
    It is the Buzz Lightyear Monetary Policy:
    “To Infinity………….and Beyond!!!”
    Measure every price in terms of gold and the charts become much more logical.

    • roger erickson November 17, 2010, 6:00 pm

      I don’t think so. In the end, all charts have to be tied to Public Purpose and the public initiative expressed – meaning the security and sanctity of the org you’re citizen in.
      That’s harder than arbitrary standards, but it’s all that really matters. As Tom Jefferson noted, if you want a safe country, you have to be willing, every generation, to get it back on track.

  • Jeff Kahn November 17, 2010, 4:23 pm

    It’s a pleasure reading the comments on this board. I’m reading a book you might all enjoy: The Creature from Jekyll Island about the creation of the Fed.

  • Tom Paine November 17, 2010, 4:11 pm

    I know it is a favorite saying of Rick’s that “Every dime of debt must be repaid, if not by the debtor, then by the creditor.”

    However, in a fractional reserve system isn’t the creditor creating credit (assets) far in excess of their deposits (liabilities). In that case,some amount of the credit/debt can be defaulted on w/o anybody actually having to repay anything.

    Honest question: What am I missing?

    • roger erickson November 17, 2010, 5:56 pm

      you’re missing that in the transition from a pegged-currency to a fiat currency system one gives up the restriction of tying public bookkeeping to an arbitrary commodity base – and regains the group flexibility to express as much more/less initiative as it needs in real time.
      We couldn’t have won WWII as efficiently by staying on the gold std. ‘Nuff said.

      All this means is that responsibility for mgt has changed. Fiat currency is ~95% bookkeeping, and ~5% useful for wealth storage. Get over it, and always stay invested in real things that matter.
      Per statistics of any complex system
      Highest cost = Cost of coordination; (Walter Shewhart)
      Corollary: highest return = return on coordination
      (e.g., WWII; we kicked ass)

      Conclusion: Invest in coordination, a moving target
      (but always explosive growth; for ~4billion yrs, just on Earth)

      Best investment? Your kids, your neighbors, your country. Saving in currency = the biggest swindle of all time. What fool, sadly, would try to save “fiat”?

      If my neighbor’s spouse died defending my nation, I’m gonna help look out for their real needs, in appreciation – NOT the escalating claimed cost of some bankster “administering” the index fiat currency projections to “try” to provide for our country’s needs.

      Paraphrasing someone earlier on this blog, “If your neighbors don’t have your back, you ain’t got nothing.”

      Otherwise, you may as well try to auction off your citizenship. You wouldn’t sell it [and your neighbors wouldn’t accept it; plus 🙂 banksters have already discounted it’s fiat value!].

    • Steve November 17, 2010, 6:52 pm

      We all sold our ‘Citizen’ ship for a bowl of democracy soup. Now on one wants to pay.

  • Tim November 17, 2010, 2:24 pm

    I am certain this pullback in equities was planned, you could see it in the way O&G and PM stocks were not responding to rebounds in the respective commodities.

    What was clear to see was that QE was doing a fantastic job of creating inflation, except that it was in ALL the wrong places. It was all going to be bad inflation, not the good type so plentiful in the last decade. Each dose of easing was pushing up PMs and Ags twice as quickly as the S&P and to add insult to injury the real intended recipient namely housing is flat or falling.

    This type of inflation is only going to make things much much worse, as it exposes the QE as an enormous policy mistake. With wages flat or falling for those lucky enough to have a job, spiraling food and energy is just going to deflationary on everything else, as people have less and less discretionary income.

    The FED will have to organise from time to time big pullbacks in commodities to stop things getting out of hand. Unfortunately for them they can’t have it both ways, ie stocks up, but real things down.

    Anyway I suspect that until real decoupling takes place, commodities in general are not going to be a safe haven to hide from money printing, as each commodity has a very real upper limit on price, absent true demand. Its interesting that given all the money printing and stimulus oil has not even looked luck taking off for 90 let alone 100. I suspect investors have learnt their lesson on that one.

    • mario cavolo November 17, 2010, 5:55 pm

      I’ll agree with you big time on the idea that crude oil as a commodity won’t work as a rising store of asset value because the world can’t afford rising oil prices…that oil & energy industry is stuck in what seems a rather obvious predicament; they surely want higher priced oil as so many pundits have been suggesting but I don’t think economic reality is going to let them get it for awhile longer….Cheers, Mario

  • mario cavolo November 17, 2010, 9:52 am

    Morning all, First of all you’re on a writing roll Rick…at your best these past few days…

    ….”Some might have sensed the hand of the Plunge Protection Team in preventing a rout. Perhaps. But who needs a PPT when just a small trickle of liquidity from a glutted banking system can propel shares skyward on any given day?

    There will be no rout unless and until interest rates rise, bonds dump….until then, stocks will continue to be a parking place and trading place in this low interest rate environment, that’s why there will be no rout…artificial or manipulated or whatever doesn’t really matter, it is what it is. Plenty of buyers will step in at a 38.2fib retrace from the S&P’s 1228 peak, if not way before then, again assuming the continued low interest rate environment. Even at today’s valuation levels, there are at least a few dozen reasonably solid stocks paying 4% to 10% dividends!

    “…But who cares about inflation at the relatively trivial level of manufacturing, exports and domestic consumption when hugely larger forces – namely a quadrillion-dollar financial shell game – are at play, threatening to expose the world’s currencies as worthless IOUs…”

    I’ll suggest you’re being tongue in cheek here :)…First of all, the shell game is irrelevant because its the new normal and I can’t imagine how one could regard inflation as trivial to mfg, exports and domestic consumption. Here in Asia anyway, inflation in those areas hurts like hell.

    The world’s currencies are not worthless IOU’s, Yes, they are being gradually debased in value over time, over the decades in the historically natural and reasonable economic cycles of growth and inflation that have gone on. The broad idea that a boom will of course again be followed by a bust is an assumed and old paradigm in a new globally cyber-connected world. Yes it helps to look at models from the past but as guides only. We are in unprecedented waters globally, economically and societally. Yesterday’s MarketWatch headline was something like “the decline goes global” and sounds much scarier than it is. I say, as many that the USD will drop to a new lower 60-70’s range in the coming year…so what? That’s nice. Then America will be more attractive and money and commerce flows of all types will once again reverse direction and the govt will start paying more attention to the National Export Initiative and things will improve! Up down up down back and forth back and forth in a complicated dance between currencies, equities, commodities, global regions, etc. It’s a global candy store! This quarter we like Snickers, next quarter we roll into dark chocolate, uhoh trouble in gummie bears, let’s move to Cliff Bars…I’m not saying it will all muddle along, I’m saying it will all rotate along.

    In fact I’ll bet that it is less and less possible in the current environment for any particular asset class to get really out of whack relative to the others. Think about that for a second; the response/reaction is now a globally connected response/reaction. That’s a lot of leverage at play, like a deep water oceanic tsunami which one could theorize prevents and protects us from any one particular item to demonize the rest. The USD won’t drop TOO low because there are plenty of folks out there with a vested interest in that NOT happening for LOTS of interconnected reasons. If oil hits $140 when it shouldn’t, you can bet there will be a global reaction which sends a very strong “we’re moving on from oil, we’re not tolerating this price” message. The Shanghai taxi fleet of 60,000 plus plenty of other vehicles, runs on LPG and soon enough your town may be running on a very safe mini-nuclear reactor buried in the hill behind Mr. Miller’s house on the westside of town. Your car will be a cute little 1.0 liter engine Smart Car. Say goodbye to your unnecessary luxury SUV gas guzzler and guess what, you’ll be just fine.

    Have faith, humans are crazy and unpredictable and scary, but creative and amazing too. They will respond at some point as they need to adjust to their circumstances and move on. While the level of greed and corruption is enough to make you want to go postal, in the light of history the debasing of currency values and inflation of costs is normal, boring old news.

    Cheers, Mario

    • donniemac November 17, 2010, 11:55 am

      Well put, Mario
      I like your rotate along analogy better than muddle through, one I have used in the past. I must remember that one, as hard as that is to do at my age 🙂
      Historically, the leveraged assets by those who do not have enough liquid assets to stand a margin call is what may be truly dangerous. That is why RAs comment that if a crash comes, it will be over before those of us on the east coast of the US are out of bed. Basically what happened in 1987. And orders, etc. move much faster today.
      Otherwise, your comments are spot on.

    • Benjamin November 17, 2010, 12:53 pm

      “Then America will be more attractive and money and commerce flows of all types will once again reverse direction and the govt will start paying more attention to the National Export Initiative and things will improve!”

      Oh, really? Well, let’s see…

      The exosphere should be overflowing with “made in U.S.A” labels! Are we waiting for China to complete the order of stickers for us? Yeah, that must be it!

      Anyway, here’s a better idea. No, wait, a MUCH better idea, while we’re waiting for those labels…

      Supposing the weight of a dollar in fine silver was 400 grains. What would happen if the weight was changed to, say, 380 grains?

      For starters, people would be encouraged to save, as such downward revaluations would yield 5% increases in domestic buying medium. With savings, we can proceed to the promised land…

      Second, it would make it easier to pay off domestic debts, freeing capital to engage in other things, which would be stimulus to production.

      It would also encourage, though not ensure, that a higher weighted foreign currency would come here to buy/invest in things. Foreign debts could also be settled in weight of the previous contract (dollar = 400 grains, not 380) or in cheaper goods and/or opportunities… creditor’s choice.

      This can’t be done with paper/digits, as there is no way to make a distinction between an old dollar and new. Inflation must increase, and, by association, a growing burden of debt.

      As our host here often says: One way or another, every dime repaid.

      Now, I’ve been oserving your posts for some time. There’s sad/worried, yet totally real Mario* then there’s the crazy, optimistic evil twin (let’s call him Luigi 🙂 ). Today of course, you’re Luigi. If you were Mario, then…

      Up, down, up, down… dimes made, quarters lost, quarters made, dollars lost… up, down, ad infinitum, ad nauseum.

      *Depression: A heightened sense of reality.

    • mario cavolo November 17, 2010, 5:07 pm

      Hi Benjamin…you are very perceptive noticing my two-sided approaches…its Luigi here ::) and in fact I am a classic Gemini twin personality.. your thought streams always regarded in the best possible way…

      …We’ve all heard the phrase “follow the money”. Well duh, greater China is the one with the money! America is bigtime missing the cue on the NEI (National Export Initiative) to China. Germany, Japan, South Korea are kicking the U.S.’s butt on exports to China…YES, Chinese consumers don’t care about politics; they LOVE to buy American branded and American made imports. They appreciate all the good America has done. Every one percent increase in U.S. exports creates 70,000 jobs. Set aside the politics and export to China to help save America…its reasonable and prudent and makes a lot of sense. On a related note, the U.S. Consulate visa office here in Shanghai is granting higher and higher record #’s of travel visas, the Chinese are arriving in America to spend, spend, spend..the reports are well known that they spend more than any other leisure traveller, even Japanese…these are the new realities….Cheers, Mario

    • Robert November 17, 2010, 5:13 pm

      “Your car will be a cute little 1.0 liter engine Smart Car. Say goodbye to your unnecessary luxury SUV gas guzzler and guess what, you’ll be just fine.”

      – I can’t tow my boat with a Smart car… 🙁

    • Rick Ackerman November 17, 2010, 5:29 pm

      With just a small bullish adjustment, Mario, you would be saying that stocks have reached what looks like a permanently high plateau.

    • Larry D November 17, 2010, 5:39 pm

      What kind of American products do you see Chinese consumers buying, Mario?

    • mario cavolo November 17, 2010, 6:09 pm

      Hi Larry…in short the brands, brands, brands….followed by the lesser known niche brands and names…

      Examples to try to give you a sense of reality here:

      1. Picture a typical Pizza Hut, McDonalds or KFC in America, praying for a mediocre Tuesday lunch rush…now imagine that McDonald’s packed with people even at 3pm, 7 days a week …huh what, impossible, right? Imagine a 50 foot line out the door waiting for a dinner table at Pizza Hut.

      2. The main line clothing/shoe/consumer goods/ladies fashion/beauty/electronics/retail brands…such as L’Oreal, Adidas, Walmart, Best Buy, etc…their numbers here are staggering…all auto-related brands and items…

      Which leads me to the point that the secondary quality name brands can step in intelligently to enjoy the ride also. There is a HUGE issue here in China regarding all kinds of fakes including products which we are told are imported from another country, but in fact are fake imports made somewhere in China. Once we as a consumer here can clearly see that yes this product is a true import (you can tell by the labels),we are happy to be able to get their hands on it with much less regard for it’s price, more for its “preciousness”. Last time we visited the states, our female Chinese friend said “please stop in at a BodyShop store and buy these items for me.” Another said they wanted the Clinique items, because the Clinique items in China are made in China under license by Clinique; they want the real stuff.

      Just a few thoughts to give you the idea…Cheers, Mario

    • Benjamin November 17, 2010, 6:25 pm

      Mario, er…. Luigi…

      The paper system has some elements of what I was talking about, but as the saying goes… Close counts in horseshoes and hand grenades. The vital components are missing, cheif among them the nessecary growth of money supply through saving.

      And because they are missing, we have dreadfuly depressing cycles. It’s like tying two people to a log, facing opposite ways, putting the log in the water, and letting them fight it out. One will win, the other drowns. Not that balances are impossible to acheive, but one tiny shift in the forces at work makes long-term balance impossible.

      But the worst is, no one need suffer in chaging things as they are. Nor is the change needed particularly difficult to conceive.

    • Steve November 17, 2010, 6:39 pm

      Well Mario, 300 years ago forced loans and debasement got one’s head cut off. That is scant time in the scheme of 5000 years. In regard to “value”. The value of a federal reserve note is zed, nadda, silch, zero. Now, should one wish to speak of perception, that is a Cow of another Color.

    • roger erickson November 17, 2010, 8:52 pm

      more re:

      that chart suggests that the std of living in 1913 was far superior than in 2010 – really?

      it’s like kids never learn math; you can panic at the numeric swings for any given co-factor in an infinite polynomial … or you could look at the net sum of the polynomial

    • Benjamin November 17, 2010, 9:06 pm


      I have no idea what you’re going on about in regards to the link I posted. All I was saying was that if devaluation was our friend, the world would have more Made in U.S.A labels than it had room for.

    • cosmo November 17, 2010, 10:50 pm

      Hey Mario
      In your list of US “products”, none are actually made in the US. Walmart, Best Buy?? They are shipping those products across the street. McDonalds, PizzzaHut, KFC?? I’m sure they have local producers for those items as well. Are you saying that buying a Big Mac in China turns up as an export from the US? If so, either I am a complete fool and need some more education or your idea of American “exports” needs a revision.

      I understand that the shareholders will see a return on the sales, but as far as “products” go, none are made in USA.

      Personally, I find globalization and “export” of McDonalds, Pizza Hut and KFC as a huge loss for humanity, as it homogenizes society and culture leaving crap behind like obesity and illness. Much of the world emulates the US and wishes for itself the same standard of living and ‘stuff’, but as I think we all know, that standard is completely unsustainable and destroying the planet we all live on.

      If your list is the best the US can do to sell things to the Chinese, we are in worse shape than I imagine.

    • redwilldanaher November 18, 2010, 5:42 am

      Nice work Cosmo. Thanks for writing some of what I was thinking. The duality of Mario is priceless too. It is ironic that so many that know the USA fantasy lifestyle is unsustainable yet seek to imitate some of the worst of it. The Chinese people have had to endure far too much already throughout history. I’d hate to see them import oodles of idiocy USA style.

    • mario cavolo November 18, 2010, 6:20 am

      Cosmos, RWD…I’ve never been called priceless before, I called my mom right away to gloat…You guys are tough and that’s good because we all need to be kept on our intellectual toes. I agree with both your related judgements on the above and I was not judging what I was reporting to Steve, the info I included on the food brands in that post was only background for understanding of China’s love for American icons/brands. With respect to our related criticisms of the overall situation, there are plenty, and ruining Chinese culture with unhealthy fast foods brands is certainly not a high point for the U.S. to be proud of….

      The point in this particular discourse is that Chinese indeed want and love American brands and have the money to buy them and that increasing exports of American brands creates more American jobs and that’s what America needs.

      It is a pleasure here in China to see the “imported items” sections of dept and grocery stores grow larger and larger, I am so happy for example able to buy the amazing essentials of life at home: Barilla pasta, Annalisa canned garbanzo beans and peeled plum tomatoes, imported from Italy, Del Monte brand tomato paste, imported from America…dozens and dozens of other brand examples and America is behind the eight ball on this opportunity.

      Cheers, Mario

  • Rich November 17, 2010, 7:25 am

    As usual, there may be additional suspects for southern market movement, including the failure of QE II, aka Titanic Two, and the king’s men making clear now they will not withdraw foreign troops or support extending tax cuts, after making a feint or two in that direction after the House election rout, the largest in many decades.

    Even Kudlow feared higher taxes may take their toll on markets, taking them below yearly lows.

    As we saw in Scott Ridley’s Robin Hood parallels with King John today, some kings do not treat their subjects civilly, so market failures and outlaws are created as the kingdom crumbles.

    Our hunch is the third leg of secular bear stock markets, like the one that began in real terms versus gold in 1999, while they may have pockets of panic, take a long, slow, tortuous time to grind their way lower, until any remaining surviving holders beg for mercy.

    Cash may be the true king hereout.

    • roger erickson November 17, 2010, 5:34 pm

      “the govt will start paying more attention to the National Export Initiative and things will improve! ”

      sure – when every nation is a net exporter, and all Fx rates are above average? only in Swamp Webegoners!

      ?? we need more Public Purpose than making things for other people! Let others make what they want for us, so we can concentrate on making insanely great things. Only public crime I see is loss of vision, and letting banksters hoard all “nominal” bookkeeping wealth while we quit inventing cool things for one another.
      Winning armies, and electorates, stick together.

      1) quit electing people who don’t have even a rudimentary understanding of how existing currency systems actually work (1971 really DID change everything – finally; get over it)

      2) quit buying SWDN (shit-we-don’t-need) from WalMart; only what you need to invent better
      (we need minimal drudgery & max invention)

      3) START insisting on dramatically lower taxes for working, innovative stiffs – and more on banksters
      (fiat currency issuers don’t get revenue in their own currency; so, post-1971 we ONLY need to tax if people are getting reckless; like banksters)

      4) quit worrying about nominal fiat deficits (increased currency supply = private savings; to the penny)
      (if you really feel strongly about the scary numbers in “fiat” bookkeeping, just insist on ending T-bonds; fiat “debt” nuked!)

      5) start worrying about the Output Gap,
      currency ISSUERS manage REAL GOODS budgets;
      …(and issue currency only for internal bookkeeping)
      currency USERS manage currency budgets as a local proxy for local RGBs [they’re not the same – at all]

    • roger erickson November 17, 2010, 5:42 pm


      uh, …. data without context are meaningless?
      (Walter Shewhart, 1926; Deming’s “daddy”)

      Without the extra labels on this chart, you couldn’t even pick out 1941-1945, the period when the USA basically took over the world – by swamping it with our better/faster/cheaper OUTPUT of stuff that now mattered more (i.e., new leverage).

      Isn’t the relative purchasing power of citizens what matters? That’s always a PRODUCT of ($PP x $held).
      Anyone seen similar charts of individual and national purchasing power?

  • Tom Paine November 17, 2010, 4:28 am

    “Our advice is to hold onto your gold and silver while the imbeciles and bad guys who control the markets duke it out, second-guessing each other to the point of exhaustion. ”

    I even bought a little of the Sprott physical silver etf today as a way of participating in Max Keiser’s “Crash JP Morgan, Buy Silver”, Google search campaign, or whatever it is.

    It’s funny watching the youtube videos of people showing off the silver the bought at

    Silver held it’s ground today even with gold’s decline, and I think that is a good omen that at least a retracement of the recent decline is near.

    I’m not so sure what to make of the stock market. The NY manufacturing report was dreadful, and with all the talk of austerity, the muni bond market soiling its shorts, Chinese cutting off real estate lending, etc., etc., its hard to imagine us getting a real great Santa Claus rally this year, but nothing would surpise me with the markets as rigged as they are.

    I’m thinking agricultural ETFs would start to look tempting around the 100dma.

  • FranSix November 17, 2010, 2:52 am

    I’m surprised to find that TIPS yields have bouyed up in the pullback, but not surprised to see that bond yields have gone down. ( Those calling for a major collapse in sovereign bonds may actually be wrong. )

    The only exception being that the discount rate manages to remain aloof from the zero bound.