Reaching For Yield

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Bond bubble about to burst?


5 Comments for “Reaching For Yield”

  1. From mid-2010 to now the gold juniors (GDXJ) are down 24%. Keep dreamin’ Bob!!!

  2. Dirk Burhans

    I can certainly understand your sentiment. FWIW I’m doing my time in the gold-silver miner’s gulag and have decided to stay and ride it up… or ride it all the way down. Hard to tell if we’re in 1976 or 1980 :-\

  3. Yea thsi has been tough slidign the past year but esp since the Sept high. Sentiment is probably the worst its ever been which should lead to a turn

  4. Bradley — What are your best performers? Would be curious to see if we follow similar tactics.

  5. There’s an important reason to take in comments regarding treasuries.

    Sell-side brokers are committed to their strategies and can’t back down now. They have to keep selling shares into the markets that they don’t own to provide liquidity for hedging strategies in treasuries that are losing money right now.

    Regulators in Canada have provided the extra available room in 2011 to enable them to carry on the duty of selling gold mining companies and buying treasuries. The tide has gone out on the mining companies for now, markets are not pricing them correctly, if at all.

    If a higher gold price is the outcome of Q1, then negative carries in almost all gold mining shares have to be settled. Some of these negative carries are the entirety of the publicly traded float.

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