June 29, 2009 – My comments remain unchanged from recent letters. With each passing day, December’s top in prices (i.e., low in yields) looks more and more certain.
However, from a short-term perspective, the price of long-term government paper is in a countertrend rally. In other words, prices are rising, and yields are falling. I don’t expect this decline in yields to last much longer. But I don’t have any specific recommendations for traders at the moment as to when to enter on the short side of this market. So for now, I recommend that traders stay on the sidelines.
My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.
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