We remain at the cross roads and to steal the line from UBS a “make or break” moment in world asset markets.
So lets use the time to reconsider where we are fundamentally here. In my view the fundamentals are finally in line with the techncials albeut at a higher nominal level than i would at first anticipate (though money printing plays these nominal tricks on us and we must remember this fact!).
The US economic data continues to show great resiliance though this remains the weakest recovery i have ever witnessed. The world economic numbers continue to weaken. The world’s central banks remain the only show in town.
Here the WF monthly review and comments:
And here a useful report released yesterday by WF on the all important US housing market.
And here the brilliant David Einhorn’s Q2 letter to shareholders. I always monitor this guy as he has made some genius calls over the last few years. He is always worth listening to and the recent Green Mountain Coffee call was typical Einhorn at his best.
Greenlight-Q2-Letter-to-Investors
You will see he is struggling in 2012 thus far recording 3.4% or so by end Q2. He is at a disadvantage as he has to move huge lumps of cash around. It is very hard for him to conceal his positions and thus it is that these large funds often underperform the indexes. In spite of his liquidity handicap he is a star performer and should be watched in my view.
I highlight his last para here:
At quarter end, the largest disclosed long positions in the Partnerships were Apple, General
Motors, gold, Marvell Technology Group and Seagate Technology. The Partnerships had an
average exposure of 107% long and 56% short.
“All things excellent are as difficult as they are rare.” Baruch Spinoza
Luck to all
Rich
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