Yesterday, we studied one of the great "pairs trades" of the last decade... shorting the old movie rental business model (Blockbuster) and buying the new movie rental business model (Netflix).
Today, we study a pairs trade that compares the "old" way of viewing paper currencies with the "new" way of viewing them.
In the past several years, we've read all kinds of analysis on why gold does what it does... essays on interest rates, central bank gold holdings, and Indian wedding-season demand.
But what gold's bull market really comes down to is folks just don't trust governments, giant welfare giveaways, bailout boondoggles, and the paper currencies behind the charade. Folks know what the yahoos in Washington D.C. do not: You can't tax, regulate, and spend America to prosperity. Folks know "there ain't no such thing as a free lunch."
This knowledge is driving wealth out of vulnerable paper money and into real, honest money – gold... And it's driving the phenomenally successful pairs trade of "long gold, short U.S. dollar" you see below.
Today, we study a pairs trade that compares the "old" way of viewing paper currencies with the "new" way of viewing them.
In the past several years, we've read all kinds of analysis on why gold does what it does... essays on interest rates, central bank gold holdings, and Indian wedding-season demand.
But what gold's bull market really comes down to is folks just don't trust governments, giant welfare giveaways, bailout boondoggles, and the paper currencies behind the charade. Folks know what the yahoos in Washington D.C. do not: You can't tax, regulate, and spend America to prosperity. Folks know "there ain't no such thing as a free lunch."
This knowledge is driving wealth out of vulnerable paper money and into real, honest money – gold... And it's driving the phenomenally successful pairs trade of "long gold, short U.S. dollar" you see below.
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