Archive for December, 2009

December 8th, 2009

Dollar, gold, sovereign debt woe

Posted in Money by ed

I had half my rather pathetic IRA account in a a gold fund FGLDX all fall, until two weeks ago, when I cashed out half. Then cashed out the other half last Friday on the employment number.

Theory being that the dollar seems near or at its midterm bottom, because the economic numbers (despite many disconnects to economic reality) are likely to bring Tightening talk into the Fedspeak.
Juicing the dollar. Hurting gold.

The world is the other consideration of the moment. Two weeks ago Dubai asked forbearance. Now Greece is waving a flag. Snowballing here seems likely to also help the dollar, short and mid term.

Team Obama are already on the tightening wagon, already talking down Job Creation and talking up the need to rein in the deficit. Quite the good boy.

So. At the moment — all cash in my retirement account. The juicing dollar also exerts downward pressure on stocks, which of course had a very good year. People generally look for Santa Claus here, this time of year, but if Greece goes belly up on its sov debt …

Wait and see with cash for the moment. Even if we have a year-end flourish, January seems forbidding. Maybe it’s just me.