Monday, June 26, 2006

Monday Morning Quarterback

www.minyanville.com


Good morning and welcome back to the flickering pack. On the heels of my quick Colorado jaunt—and before I scoot to jury duty this morning to satisfy my civic responsibilities—I wanna scribble some dribble as we begin our fresh five session set. As I’ve been sans screens for a few days (and will likely be in a similar situation for a few more), I share this fare with hopes that some beneficial vibes resonate. These are critically important times in the land of flickering ticks and take me at my word that I’ll be back in the saddle—and back on the Buzz—as quickly as I can.

The Denver Chronicles

I hosted two town hall chats on Thursday, the first with the good folks at the CFA and the other with the kind peeps of the AAII. While the former were decidedly professional and the latter was skewed to the individual subset, I walked both through my process of metric assimilation when viewing the financial dew. In doing so, I ranked the four pillars of our metric mix in the following order, offering vibes on each that I must summarize due to the space constraints of this column.

  • Structural: We spoke about the “dollar vs. asset class” dynamic, offering visual validation that gold, crude and stocks have traded “monolithically” against the greenback. We touched on the simultaneous ‘flations and the higher costs of things we need coexisting with the lower cost (and pricing pressure) of things we want. We discussed the difference between legitimate economic growth and debt induced demand, how total debt in our country is more than 300% of GDP and how that will manifest in the years ahead. And we monitored the compression that’s prevalent in our derivative-laden financial fabric and discussed how that’ll play out in the current state of globalization.


To see the rest of Todd's pillars, read the full article

Good luck today.

R.P.