Paul Tudor Jones sees boom and going for gold

Translated he wants to sell and needs suckers to buy.

Wall Street is worse than any regulated casino on the planet.

 

Given your comments above, you obviously did not bother to read PTJ's Macro Perspective on Gold which begins on Page #14.

http://www.scribd.com/doc/21753600/Tudor-Third-Quarter-Letter

 

I think that this was the case with 1987. Prechter advised to "sit tight" and hold long as the end of the world was not yet neigh. Tudor, like a good trader, changed his end-of-the-world in '88 view to end-of-the-world in '87. Trader was right, analyst was wrong...as is often the case. I'm guessing that we're seeing this same thing now, where Bob and Paul don't agree.

Might we call this the second coming of the "Prechter-Tudor divergence trade?" My bets on PTJ, EWT doesn't seem to account for the extreme stabilization policies that have been undertaken by Great Depression expert (and coincidently) Fed Chairman Benjamin Bernanke. Things change, no big deal.

 

all these "gurus'are hucksters and liars. my belief is we tank because nobody on earth believes we can.i've never seen so much bullisness in 30 years. the feds grand plan was to drive stocks to the moon so all would become addicts and couldn't control themselves and have to buy stocks. it was meant to cover up the terrible economy.now as the mkt falls all the con #'s will tank again and the negatrive fed back loop starts again.below is tidor who was dead wrong and got killed and threw in the towell. just another reason to short







Sept. 1 (Bloomberg) -- Paul Tudor Jones, the billionaire hedge-fund manager who outperformed peers last year, is wagering that Goldman Sachs Group Inc. and Morgan Stanley got it wrong in declaring the start of an economic recovery.

Jones’s Tudor Investment Corp., Clarium Capital Management LLC and Horseman Capital Management Ltd. are taking a bearish stand as U.S. stock and bond prices rise, saying that record government spending may be forestalling another slowdown and market selloff. The firms oversee a combined $15 billion in so- called macro funds, which seek to profit from economic trends by trading stocks, bonds, currencies and commodities.

“If we have a recovery at all, it isn’t sustainable,” Kevin Harrington, managing director at Clarium, said in an interview at the firm’s New York offices. “This is more likely a ski-jump recession, with short-term stimulus creating a bump that will ultimately lead to a more precipitous decline later.”

Equity and credit markets have rallied on hopes that government intervention is pulling the U.S. out of the deepest economic slump since the Great Depression. The Standard & Poor’s 500 Index jumped 51 percent from its 12-year low in March through yesterday.

The economy will expand at an annualized rate of 2 percent or more in four straight quarters through June 2010, the first such streak in more than four years, according to the median estimate of at least 53 forecasters in a Bloomberg survey.

Tudor, the Greenwich, Connecticut-based firm started by Jones in the early 1980s, told clients in an Aug. 3 letter that the stock market’s climb was a “bear-market rally.” Weak growth in household income was among the reasons to be dubious about the rebound’s chances of survival, Tudor said.

 

I call BS.

Since when does a hedge find like Tudor's show their cards to the world like that. That entire letter was nothing more than a compendium of conventional wisdom like that found on CNBC every day.

My guess is that positions in Tudor's funds bear very little resemblance to those described in the letter.

 

PTJ is nothing more than a trend-following-fool monkey. Take a market that is showing technical strength and he will fit an excuse of a story to justify jumping onto the nig-pile. Usually the realization of the trend by these turkeys is just about when you should be taking the chips off the table.

PTJ is 99% hype.

 

Perhaps this has to do with the fact that he is up 15%, just like almost every other year in the last 25 years...

 

Try taking the other side against those turkeys on all those "technical strength" trades. You will see how far you get.

 

Inusitatis atque incognitis rebus magis confi damus vehementiusque exterreamur.

(The unusual and the unknown make us either over confident or overly fearful.)
Gaius Julius Caesar, Commentarii de Bello Civili, II. 4

Summarizes Gold Interest Rather Well

 

There is and was no reason to have read this or any of the other 1,000s of letters these "gurus" put out. There are a lot better uses of people's time than trolling around the web seeking what bloggers and vendors and brokers and financial-news channels and information providers and everyone else says.

Market timing has a terrible record, and watching people trying to prognosticate or explain why the market will or has or is doing something is usually a massive waste of time.

My commentary is quite accurate. The market knows better than any guru, and gold is already relatively expensive and has a mediocre performance history for the average person, for many decades.