Mark McHugh

Archive for May, 2009|Monthly archive page

If you’re thinking about buying Gold now – Think again (please)

In Gold, stocks finance on Thursday, May 21, 2009 at 11:03 pm

The answers to life’s problems aren’t at the bottom of a bottle, they’re on TV!”

~Homer Simpson

I guess it was morbid curiosity that made me put on CNBC  for the first time in a couple months (and that’s all I got to say about that).

All day, between Wonder Hange commercials, the forbidden word was uttered repeatedly.  Gold. If I were more ambitious, I’d create a montage of people saying the word gold on CNBC Today.  But it could never compare to MJK’s four minute plus montage of Homer Simpson saying, “D’oh”, so whats really the point?  Well, the point is the bobbleheads were so busy saying the forbidden word that I’m surprised no one collapsed from lack of oxygen. Gold gold gold GOLD gold………get the picture.

Gold was up about 17 bucks, while the dollar, stocks and bonds retreated. Of course normally, when gold’s up 17 bucks my favorite morons forget to mention it.  They treat gold like some sideshow curiosity that was once considered money….go figure…. But from time to time, they actually suggest that you should buy gold.  And if you’re paying attention, you know that is the time you should sell gold.

Of course when I say “gold”, I mean make-believe paper and pixel gold, not shiny yellow metal.  There’s really no connection between the two.  The “prices” that you trade on are figments of  imagination; no more real than the $35 “price” claimed by the Bretton Woods system.

The losses that you can suffer listening to the quacks on TV, however, are quite real……

more…………. Read the rest of this entry »

It’s the Currency, Stupid!!!

In Open Thread on Sunday, May 3, 2009 at 2:07 pm

Author’s apology: Let me start by saying, “I’m sorry.”  This article deals with the painful vaporization of American wealth that occurred last fall (a time most would rather forget).  Furthermore, it may be prove to be a buzzkill to those high on optimism right now.  And to make Matters even worse, it contains a sports-entertainment image that some may find disturbingly homo-erotic.

Sept. 19 – Nov. 20, 2008

Remember this?

sep-novFrom Yahoo

The S & P 500 lost over 39%  (SPY = red line).  The other thing on the chart is the dollar bull index (UUP) which moved up an astonishing 13.5%.  So, is it odd the the US dollar had it’s best 60-day performance ever, while US stocks fell into the abyss?  I’ll admit, the chart doesn’t seem to illustrate any correlation.

But, what if you took the same data, and multiplied the daily percentage return of the dollar index by -3?  The chart would look like this:


Still think there’s no connection?


Read the rest of this entry »