For all my raves and rants in the past 2 weeks about the devaluation of money and the G3 +Chinaprinting presses. I just realised I am long cash !
Current investments :
1. Silver 6M accumulator at 30.10
2. Gold at 1,680
3. VXX US etf
4. BOIL US eft
5. SDS US eft
6. AUD 1Y TELSTRA bond and USD HSBC perp
7. Short EUR/USD
8. Long USD/SGD
9. AUD/USD 1Y accumulator at 95.00
10. EUR/USD 6M decumulator at 1.3450
Just a comparison for my own understanding, I did the table below.
Column 1 : USD vs the rest of the world from Oct 2010 – Jun 2011 (QE2)
Column 2 : EUR vs the rest of the world since LTRO last week.
If EUR is going to behave anything like the USD did, we are going to see SILVER and GOLD and CHF the main beneficiaries followed in a distance by NZD, AUD and TWD.
Now, it is premature to assume the same result especially with China and BOE pursuing the same QE dreams. Currencies are dangerous.
To further illustrate, I create the following table of correlations during QE2 and since the LTRO.
It is hard to think with all the noise going around today on the RRR cut rumour and the PSI verdict leading into a high Non Farm Payroll number tomorrow.
Like all charts, time will bring the reality check home and teach us a thing or two about the meaning of valuation.