What do you get when you mix 25 investing maniacs with YWR, beer and
at a pub in Belgravia?
I’ll tell you.
Here are the highlights of 3 hours of unplugged financial speculation.
“I know this market is a bubble, but CPI is going to come in low. This will give the Fed ammunition to cut rates and step on the gas. I want to be long equities for the overshoot.”
“I’m long Chinese equities, but not super excited. We are getting a rerate of the Chinese tech stocks. I’d like to see more economic stimulus.”
“AI is the equivalent of a Gypsy caravan site. Incest and in-breeding never ends well. Surf the euphoria of pregnancy but get out before the reality of birth… “
“I’m shorting Sterling. The UK is in trouble My friend is a Labor councillor for a district in London. They are furious with Keir Starmer. He is hurting their re-election chances. Normally, they would support the PM and take one for the team, but things have changed. They will take him out quite soon and replace him with someone who will tax and spend more.”
“I’m finally making money from following politics. I love politics and always obsessed about it, but it never helped me trading FX or markets in the past. But now I am. I’m buying call options on mining companies the US government might get involved in. It’s been working.
I’m buying options in UEC (Uranium Energy Corporation) seems like a great candidate for the US government to support. They are building a uranium enrichment process to turn yellowcake into uranium hexafluoride.”
“Exchange clearing houses are the new systematic risk. It was why the Bank of England was so quick to announce they were buying bonds during the Liz Truss bond blow out. They could see what was happening behind the scenes with collateral at the London Clearing House. But the central banks know this now so they will have to manage bond yields during any stress.”
The most consistent and recurring conversation of the night was Gold.
“Erik you aren’t writing enough about gold miners! They are the biggest trade! You and your lame 8% allocation to GLD are missing it. You need to pound the table more.”
“I took all my equity positions and where possible converted them to call options to free up capital so I can own more gold miners. If you think there is a good chance $500k can become $10 million you should take it.”
“I’m in so deep I even went to the Rick Rule conference. I was one of very few woman and a bunch of old guys. It was so weird.”
“What’s the best way to play palladium?”