I first started buying at $24.30 & then averaged with 75% of my buying of total units between $23.00 & $23.15
So with current pricing im well ahead.
I am a trader, not an investor. I look for changing trends in beaten down stocks, good stocks with liquidity, soft commodities and hard commodities.
Im keeping my Cocoa & Coffee and im starting to buy sugar futures. World rainfall is heavier than usual so there will be a short squeeze within 18 months.
The unfortunate thing is I hold Physical soft commodities in warehouses. It has an expire date from when I buy off farmers, so I will be offloading my Coffee and Cocoa soon. I bought all the farmers harvest 5 years ago for the next 10 year period. I can sell that to the larger companies by way of receipt contract. How ever liquidity can become problematic, especially now everybody is asking for Brics currency and they are dumping USD, not that I trade in USD anymore. Its too dangerous to hold.
The reason for my sentiment change is the last session of the Dow. I have read and read for reasons for the trading session and all I can see are large financials, fund managers and the largest traders selling. Hence Bonds down, dollar down and stocks down. It does not usually correlate like that, not unless there is a problem within the system somewhere. Libor is short and the call on USD is picking up. That does not look right to me.
Im not saying. it is 2007 all over again, but it's something im watching very closely. Nothing is making much sense to me and when that happens, I go to cash and hold nothing else. I just let it ride out and I wait and see how the market reacts to variables.
I have no loyalty to anything within markets except for my bank accounts. Money only ever understands money, it knows no creed, colour race or other wise. When everybody is losing value beit in anything, I look at the value of what ever it is going forward and adjust accordingly, subject to forward supply & demand. It's more calculative. It may be that at some point we see a volumetric war of sought, so taps could be turned on, A LOT.
Saudi monetary policy and fiscal stimulus will determine that as Deir el-Zour is in control of the US army so Turkey must act and secure the feed line through to Europe. If that happens then the US get more contracts for Europe and take money out of the pocket of the Saudis. They will react in kind by turning on taps.
So I hope that long winded reply assists with why I am starting to believe for a period of time that my cash will be king.
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