And I also say this is easy money, from a market speculation standpoint. (If you accept assumption deflation is here, and it will worsen and be the primary dynamic for the next few years.)
1) I recently doubled-down my double-short position on gold, which I established a couple weeks ago. (“GLL” PROSHARES TR II PROSHARES ULTRASHORT GOLD) That position is now at 15% of my portfolio. When the gold bugs realize they have bought a commodity and are now facing strong winds of deflation, they will turn tail and dump gold.
My market call? Gold below $700 within the next 12 months. Yes, when I see that price I will switch my position to the other side (long) buying up truckloads of the yellow metal.
2) Finally, after years of saying “NO” I’m now saying “YES” agreeing with analysts who – for years – have been predicting economic crash in China. They are finally right. Major economic crash is hitting China. I believe it has already started six months ago and is now irreversible.
I took a position in Ultrashort Xinhua China ticker FXP. I’m late on that trade. Shanghai index has already fallen quite a bit.
YES, I’m working on selling my Tianjin condo. (I should have gotten it onto the market and sold it six months ago.)
3) I am betting for a continued rally in the US long bonds, buying TLT (iShares 20+ year treasury bond fund). I’m also late on this trade. Bonds have really rallied recently already ahead of my trade. Yes, I’m implying that the Fed will act to pull down the yield of the long bond.
