In breaking my run of over three months without a new post, something that I read today was inspiration enough to buck that trend. Apparently, Bill Gross (of Pimco fame) posted on twitter that we should expect an emphasis from the Fed next week that rates will stay where they are for an extended period (shocking, I know), but that there might also be some sort of indication that the Fed intends to cap rates on certain maturities of Treasuries. In other words, they will go out into the market and buy certain bonds at a certain level to ensure that rates on them do not move up. So, for all those who said QE was done, welcome to the new QE.
That is assuming of course that someone as well positioned and connected as Mr. Gross knows what he's talking about...
In other news, gold has become range-bound, living up to seasonal expectations. I intend to capitalize on better prices for certain related ideas as we move towards the humid July/August period. Nevertheless, the key point to be made is that gold is staying the course overall.
