Alpha today

Collected some alphas today. Yesterday, I daren't touch the stock market because it is just impossible to logically predict which way the markets would go. Investors were dumping physical gold to realize cash. And Yankees were repatriating their foreign investments back into USD. Of course, I have no evidence of any of these activities but you hear about them and those are the reasons I suspect why POG fell and USD went up. You would have expected the opposites to occur.

The Chinese and even worse still, the Indians, need a lot of infrastructure work. The Japanese are reconstructing after the terrible natural disasters. Then there is Brazil and soon Indonesia with infrastructure spending. I cannot see how commodity prices can vaporize. The Kiwis are too minute to matter. The recent sell off must be the work of hedge funds which invested heavily in commodities.

Just remember, the POG is 27% higher today than a year ago. So while it plunged recently, gold miners which produce gold ingots are still very profitable.