Symmetry Capital Management

Back in 2010, we wrote that we viewed gold as overpriced, but were unwilling to lie down in front of what appeared to be an early-or mid-stage bubble. Good thing we didnt, as spot gold is up about 40% since. It might be time to revisit the trade though. In May of this year, Michael Darda of MKM Partners observed that the commodities rally was getting a bit long in the tooth when compared to earlier bubbles like U.S. housing and the Nasdaq. In late July of this year, Doug Short provided an eye-catching overlay of the recent gold price run-up on the bubble and bear markets seen in recent years.

GDP was better than most expected at the end of 2009, but in line with what credit markets and other forward looking indicators were saying last year. The proposed budget calls for a deficit of $1.56 trillion, a figure that is sure to stagger the imagination, create anxiety in many voters and taxpayers, and foster a fresh round of pundit bloviation. The authors explain why they think the budget is actually positive news for markets and the economy.

We're taking a more bullish stance on the USD and related assets such as Treasuries? Markets are making the same case today, with the dollar up, and stocks and commodities down. Pundits are attribu