Ad Hoc Commentary – Paulson cuts gold stake 53%. Smart money to come for the remaining 47% after the summer?
“…Billionaire hedge fund manager John Paulson, who told investors as recently as last month that they should own gold, cut his holdings in the metal by more than half as prices plunged into a bear market…”
http://www.bloomberg.com/news/2013-08-14/paulson-cuts-spdr-gold-stake-53-as-soros-sells-out.html
Paulson had thrown in half the towel. In all likelihood, the smart money that was aware of the pressure to sell at any price will go on a mini celebration. Gold will likely post a relief rally while equities post a correction in the remaining summer weeks. Don’t worry, smarties will likely be back for the remaining 47% after the holidays.
Left Behind 2014 – the year of resentment?
Left Behind is an upcoming American thriller starring Nicolas Cage based on the idea of pre-tribulation Rapture:
http://en.wikipedia.org/wiki/Left_Behind_(2014_film)
Just as supernatural forces did not end the world in 2012, supernatural forces will likely not leave behind average Joe in 2014. However, Rapture or not, average Joe will feel very left behind in 2014. That is because if the stock market rallies into 2014 as we expect it to (after a brief summer 2013 correction), then underemployed (or unemployed) average Joe will fell left behind economically.
Average Joe would not blame himself. He would not blame others because he is a good person. But he would likely blame the system. This will be bad for politics. We can use the approval ratings of Congress as a proxy for the unhappiness with the system:
http://www.gallup.com/poll/163964/congress-approval-rating-remains-near-historical-lows.aspx
Good luck in the markets.