BAGAKOAA; 4 June 2012 Help Me I'm Molting

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June/2012

Help Me I'm Molting

 

Ok Margaret Hamilton said it better in the 1939 movie The Wizard of Oz, (No not you Terry, that would be the Wizard of Aus). But now we are home and Devin was sharing with me her dilemma last night as her forehead was starting peel from our few days in the sun. Now here "peeling" was about the size of a gnat's left wing. Well, my peeling process is starting and I have already received brochures for the Island of Spinalonga in Greece. That was one of the earliest and last great Leper Colonies of Europe.

 

I am sure you all remember Spinalonga. They used to have great hockey games there. Then they stopped because there was always a face off in the corner (Badda Bing). The poker games kept getting interrupted because the players were always throwing their hands in. (Badda Bing).

 

Anyway, my molting process has begun and it is not pretty. Now that I have no hair, my molting begins at the back of my neck and goes all the way down the front of my face to my neck line where my rash guard covered my girth. The little flakes I have currently falling are also the size of a wing. Perhaps the size of a pterodactyl wing. Not pretty. Every time I scratch my head I hear Bing Crosby sing White Christmas. Flakes everywhere. Most of you know me and agree I am just one big flake anyhow.

 

Yes it seems like just yesterday Man Child was on our veranda in Hawaii.

 

jack hi

It was just week ago that my lovely wife, 5 weeks after knee surgery decided that a good therapeutic excersie would be to climb along the volcanic rocks near the edge of the ocean.

 

Dev HI

And yes it was only last week that she would stare at a beautiful sight, a sunset and I would stare at a beautiful sight, her staring at a beautiful sunset.

 

Dev Hi 2

Don't worry I am not sucking up, as she does not read this thing. Just stating a fact.

 

But now we are back to reality. There was a week of mail to clean up from home. I think every Republican west of the Mississippi (Ok I really don't know if Wisconsin is West of the Mississippi, but we got a nice note from Congressman Paul Ryan who was thanking us for our support and not asking for more money. Personally signed-trust me I can tell the difference-cool) was asking us for money. I keep getting notes from Ann Romney saying I can lunch with Mitt for 3 dollars. That is scary because I spent a lot more than that a month ago and got semi respectable chicken something. I don't know what you get for three bucks.

 

I am noticing the not for profits are getting more aggressive now as well. Perhaps all this talk about higher taxes for the rich is making us greedy one percenters more greedy. I was reading in the Journal last week that 34% of the capital from Spanish Banks have disappeared over the last 6 months. There is nothing more mobile than a millionaire threatened by higher taxes. The classic story was Tiger Woods asking the Awards Committee for the Las Vegas Invitational circa 1996 (one of his first majors) to hold his check for 11 months until he could relocate from Orange County California to Florida, saving him hundreds of thousands of dollars that year alone.

 

Then we had a weeks worth of e-mail and PADI mail.

 

I took Ellen to lunch today to see the gang at Hanna's as I have not been there in 11 days, a personal record since they have opened I think. Lunch was great. Sean has come up with a nice light salad that really hits the spot.

 

By the time I got home, Devin was cooking up home made tacos with all the trimmings.  Kristin and Ryan joined us and even Jack suffered through a meal with us before a few hours of studying with Tutor Kristin.

 

This gave Devin and Ryan a chance to play some Uke.  (Yes Ryan bought one over in Hawaii as well.

Dev Uke 2 

I guess she just can't stand the fact that I get invited to perform almost everywhere we go.  She wants to become a superstar like yours truly.  Here I am closing the evening at Amy and Jason's wedding singing "The Hawaiian Wedding Song" with my band the Three Hawaiians and a Cadaver.

 Elvis fans will note I am wearing an Avanti Original, the same shirt design Elvis wore on the cover of Blue Hawaii.

 

Mahalo very much ladies and gentlemen.

Let the Autopsy Begin

 

Tonight, I got to pick apart my watch list and dissect my performance for the last month and year to date. It was not pretty.

 

Our Salve Lucrum account (our personal account), had realized YTD ending May 31 losses of 1.81%, which has improved by a couple of basis points. My current holdings show a YTD unrealized gain (loss) of -.03% also known as even.

 

For the month of May alone, we had a realized loss of 10.02% with most of that attributed to the wicked Broadcom options and the stopping out of ACET, LMT, AGU, and a couple of options on V and CHK. Had we not gotten out we would be looking at 21+% down. Remember more than half of making money in the market is not loosing it in the first place. Sounds nice, but does not help the pain.

 

Most of the other managed and co-managed account did better by comparison.

 

Today we just licked our wounds and sold some call options against the few long positions we still hold (AAPL, XOM, and WFC) We tried and failed to get into a January 160 Call option on GLD at 11.00 a call.

 

Our thinking is by then a lot of the money seeking a negative return in US Treasuries, UK Guilts, and Duetebunds, will be looking for a place to nest. Also we should hear The Fed and other Central banks talk about more QE. (Remember that fancy term Quantitative Easing is fancy speak for "print more money". Except for China who ease via relaxing bank capital requirements which is a bit more responsible than running the printing presses.) As the QE speak increases gold monkeys will come back into the market a drive the price up.

 

CAUTION, Barron's did a good piece on gold over the weekend and the price escalation of Gold to all other commodity assets groups have been blown out of proportion. It is being considered as a highly speculative commodity ignoring rational supply and demand economics. Food for thought.

 

Now if you want to talk about rational, there are a lot of "rational' money managers and hedge fund managers buying Treasuries, Guilts, and Duetchebunds at 1-1.5% yield knowing inflation estimates for the next 18-24 months is 2-2.5% Is it rational to knowingly loose 1-1.5% a year? They must really be afraid of something?

 

Salve Lucrum

 

 

 

 

 

 

 

 

Brian Ireland
 
Since 5/2/2012
BAGAKOAA;

I am not a professional investment advisor. Anybody reading my blog and investing accordingly must be out of their minds. I have made more money than I have lost. There are many more qualified people than I to actually tell you how to invest your money.

BAGAKOAA=Boys And Girls And Kids Of All Ages

Salve Lucrum=Latin for Hurrah for Profit.

2012 Year Ending

Dow 13,073

S&P 500 1,358

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