Wednesday, March 18, 2009


How do you read what happened today? The Fed injects a TRILLION and the markets love it. If they threw in a trillion for good measure, that is one thing---but I think that this means we are really in trouble economically. AND DIDN'T WE JUST MONETIZE THE GOVERNMENT DEBT? Did you see the reversal to the upside in gold when the announcement was made? If you don't have some gold---you are going to get left behind if we really see inflation heat up. I like silver as well.

Perhaps my favorite inflation play of all is oil. As the dollar starts to weaken we will get back into the spiral that we were in last summer with oil going up. I believe that we will see oil prices well over $100 per barrel in the next three months. It seems like the street woke up today and decided that the inflation trade was real. I don't see how we can not have inflation with the massive numbers that we are seeing thrown at this economy.

I think one of my old favorites Freeport FCX--though it has had a great run, has a lot more of upside potential in an inflationary environment. This is a well run company and these guys did a good job of reacting early in the recession. I think this one could be a 4-bagger.

There are also some good silver miners SLW looks like a good play. We will have John Bradshaw Layfield on the show tomorrow.

Please visit his site at
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