Monday, November 24, 2008

Not impressed, not impressed.....

Back from the summers of Australia and Singapore into the freezing cold of Europe both physically but also intellectually.

The week-ends bail-out of Citi smells like AIG to me - the "hopers" will maybe have their 5-6 hrs of joy, and the appointment of Geithner as Treasury Secretary being behind 7 pct rally is simply too funny. Geithner is in the mold of Sarkazy and Dirigisme. A true politician who serves his masters in politics before being the treasurer for all of America. (Ergo: No change, but more of the same)

I had wished Obama has been a little less obvious in his choice - why not appointing someone with Seniority - somone who had acutally had a real job? No, we are going to see the US follow into the worst benchmarking of all: European standards.

Financial US is already expecting the worst from Geithner: Apperently he holds a serious grudge on anyone making more money than him, and the only reason for the praise bestowed on him right now seems to similar to press policy in Russia: If not positive about the "great man"......there are a price to be paid down the line....

I note with interest this piece on how Geithner in true Russia fashion seems to be "reshaping" his views post......http://www.newyorker.com/online/blogs/jamessurowiecki/2008/11/geithner-and-le.html

More later - just wanted to be my "anger" out early today..

Strategy:

Still the same ...... We need to recalibrate our new S&P target as we met our 765.00 minimum last week - but let me give you insight to the information I gathered this past week in Asia - It is not going to be higher - on contraire - I am more negative now than before last week.... I simply can not get this semi-pregnant stuff which Government by government does - on the context of: Systemic risk....... this is going to be very, very painful road to recovery.........I am really sorry, people are starting to point fingers at me for being too negative, but again, as I have said all along I am driven by some simple objectives:

1. Being realistic in all market conditions
2. Always trying to make people think out of the box - mental mapping I call it...
3. Make money for my investors

I may not reach as high on point 1 and 2, but the least I can do is point 3 - and right now the opportunity costs to being EXTREMELY DEFENSIVE is zero..........hence I remain sceptical and realistic. The hope I leave for the ones going to church.

Safe trading,

Steen

1 comment:

Jim Sampson said...

Why short GOLD now? Hedge funds have already sold out and ordinary people are desperate to make money (no make that hold on to what wealth they have)and with emotion also in play GOLD could be a player.
Cheers
Jim Sampson
Austin, Texas