David Einhorn Bullish On Gold As Legendary Short Seller Fleckenstein Blasts Fed by Bill Fleckenstein
On the heels of the Dow and the Nasdaq hitting new all-time highs, David Einhorn is bullish on gold as legendary short seller Bill Fleckenstein blast the Fed.
By Bill Fleckenstein President Of Fleckenstein Capital
February 14 (King World News) – Overnight markets were a nonevent, while the stock market here started out the day trying to move higher, but it stumbled on Janet Yellen’s Congressional testimony. Not that she said anything earthshaking, as she merely indicated that, gee, maybe we could have a rate hike in March, but that was enough to set markets in motion, particularly the dollar and bond markets…
However, I don’t think that was really the proximate cause for the small selloff of a few tenths of a percent that the stock market experienced through midday, because that market has zero fear of the Fed. That point was made by the indices themselves, as they turned around and rallied to a gain of about 0.3% by early afternoon. (I had to leave a couple of hours early, so folks will need to check the box scores to see how things finally settled out).
Away from stocks, green paper was quite strong, bonds were hammered, with the 10-year trading back up near 2.50%, and the precious metals were higher, with silver up 1% to gold’s 0.3%.
Truth Without the Consequences
I know I have said it many times already, but I can’t stop myself from repeating it once more. After all the havoc that has been wrought by the Fed and other central banks, all their cluelessness, their threats to raise rates, and inability to do so, it is astounding that they still have one ounce of credibility — but amazingly they still do.