February 28, 2008
- Hedge Funds, the New Beatniks
Hedgies these days are racing into commodities. Even big institutional institutions, such as Cal Pers, are rushing into commodities. CalPers and Cal State Teachers Pension Funds are trying to get their allocation up to $7.5 Billion in their centabillion endowments. Where have these people been? The rise in commodity prices began in the first quarter of 2001. The cut rate Greenspan plan of the 2001-03 era spawned a multitude of raw material price spikes. There were articles on the web. Morningstar dug up its old research in the early 1980s showing that bull equity markets and bull commodity markets were inverse…and we'd just done a half gainer off of the Y2K tower, splat onto the pavement. Where were all these brilliant MBA and PhD types, the financial rocketeers of our time, with all their brilliant computers and the ability to type out a quadrillion number without breaking into an emotional sweat. Huh? Where? (…)
January 3, 2008
- What About Gold?
Oil hits $100 a barrel, and that's all the media can talk about. ONE story a day with bad news in it, that's the limit. Mr. (…)
