Tuesday, January 4, 2011


Broadcom Could See Some Collateral Damage

If the ATHR/QCOM deal is accurate, BRCM should get hit, as the company has a licensing agreement with Qualcomm.

Minutes Minutiae

The Fed seems fully committed to completing QE2.

My principal takeaway from the Fed minutes is that the members have a high economic threshold upon which any alteration of policy would be implemented. In other words, the Fed seems fully committed to completing QE2.

Recommended Viewing

To some degree, I agree with Jim Cramer's contention that gold should be viewed as another currency. I fully recognize the difference between AU and industrial commodities such as copper and steel.

But more importantly, I can envision an economic/capital market setting where the conditions for gold, even when viewed as another currency, could be pressured and volatile.

Today's $45-per-ounce drop in the price of gold could be the precursor of increased volatility this year for the commodity.

Large Gold Put Buyer

I'm hearing rumors that there has been a large buyer of gold puts over the past few days.

Over the last few months, I have highlighted screwflation -- the notion that while corporations are flush, the average American is not.

The risks associated with this imbalance were highlighted in two editorials in The New York Times recently.

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