Positions
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+100 GS @ 106.37 vs. cost @ 74.79
+2000 UYG @ 2.67 vs. cost @ 2.00
Markets
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Global surge - equities across the globe are soaring on the Treasury's plan to purchase toxic assets. The plan is certainly not without flaws/kinks, but it has sparked a big rally. The Fed's plan to purchase "Long Dated" treasuries and MBS spurred initial optimism last week. Two things to note...
1) When did 2yr-10yr treasuries become longer term?
2) Is this rally sustainable?
Regardless - I predicted a while back that the Geithner plan would have a seismic impact on the markets. So far, so good, but I see too much bearish sentiment to defend my earlier statement. It is possible that we have seen the bottom, but we've all be faked out before.
I was very encouraged to see February Existing Home Sales shoot up 5.1% month-over-month today. Chalk it up to steep, and I mean steep, discounts. Let's see some momentum in the housing markets and maybe then we can talk about the worst being over. Forget about the labor markets. 7% unemployment is going to look good 1-2 years from now. The natural rate of unemployment probably has shifted higher.
An unrelated aside.
Why do the best people always get treated so poorly?
Live from passion free land,
TM
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Why do the best people always get treated so poorly?
ReplyDeleteWell, maybe we don't take regular stock of how we treat the other people, and only note it for people who in our views don't deserve it.
Or, on a related note, maybe we think that just because they are the best people, they don't deserve it.
No one said that life was fair. "It's a random walk"
:)
Joe The Neighbor