New Position - BC

Today I added a small position in BC. It will likely just be a short-term (one to two months) trade as I think the economic risks remain high and a recession is more likely than most economists are forecasting, although not a definite. And in a recession the market for boats and other luxury type goods disappears. BC has quality management but has been battered for a while now and the price is attractive both from a long-term and short-term perspective, but with the economic risk, I'll play it as a short-term trade.

In other news, I wasn't at all surprised by the Fed today. This is pretty much the nail in the coffin for the dollar. It may get a brief rally but I don't expect it to spend much time north of 80 in the in the intermediate term. Gold prices are easily going to take out the previous cycle highs around $730. The recent Fed action shows they want to talk down inflation, not actually do anything about it (they like to throw a nice scare into the commodity markets). They reason that all the economy's issues just require more dollars (through injections or lower borrowing rates). Well folks that is inflation, regardless of what the screwy PPI numbers say. That coupled with news today that Spain, the world's largest seller of gold this year, will not be selling more gold puts the downside risk to gold (and other precious metals) at a minimum.

My current holdings include: SLW, GFI, CSX, and BC.