My covered calls on FXC were assigned to me over the weekend because the shares rose through the strike price. I bought all of the shares back in a wash sale and renewed the covered calls. I also renewed my covered calls on GDX, FXA, and FXF. I remain long all of these currency and mining positions as hedges against US dollar devaluation. Nothing the US government has done in 2014 will solve its long-term solvency crisis. The Alfidi Capital thesis remains solidly in the hard asset hedge corner of a dark, lonely forest.
Oh yeah, I still hold a bearish put position against FXE. I will sell off if it is in-the-money at expiration. The Euro-folks have not cleaned up their act. No one on the Continent has a clue how to run government finances. Euro-leaders have dissembled for years about whether they will let the PIIGS exit. Investors betting on a European resurgence are really betting on lies.
Those of you who are bored with my steady-state portfolio are free to roam elsewhere. I have said before that I will not invest in a stock market where central bank intervention inflates assets prices and lowers the cost of capital. That is unsustainable. Any investment decision that assumes such conditions are sustainable ignores history. Mean reversion will anger many investors who could have known better.
Oh yeah, I still hold a bearish put position against FXE. I will sell off if it is in-the-money at expiration. The Euro-folks have not cleaned up their act. No one on the Continent has a clue how to run government finances. Euro-leaders have dissembled for years about whether they will let the PIIGS exit. Investors betting on a European resurgence are really betting on lies.
Those of you who are bored with my steady-state portfolio are free to roam elsewhere. I have said before that I will not invest in a stock market where central bank intervention inflates assets prices and lowers the cost of capital. That is unsustainable. Any investment decision that assumes such conditions are sustainable ignores history. Mean reversion will anger many investors who could have known better.
