Entry from June 28, 2013

Rothschild Moment (Buy when theres blood in the streets)

Buy when theres blood in the streets is a statement that has been attributed to Baron Rothschild during the Panic of 1871. Prices are lowest when there is blood in the streets (or after a bad economic event), so thats said to be the time to buy.

Henry Smyth: Is this the Rothschild Moment for Gold? was the title of a Zero Hedge article on June 28, 2013. Henry Smyth of Granville Cooper Asset Management Ltd. (GCAM) was interviewed and said:

HS: The shorts in the market are running out of short fuel. The decline in gold has been going on since late 2011 and is very long in the tooth. Sentiment against gold is virtually 100% right now among Western gold analysts. This is a Rothschild moment.

RCW: This is a reference to the famous dictum by Baron Rothschild: “Buy when theres blood on the street?”

HS: It is.

Mayer Rothschild moment was cited in print in September 2006, Lord Rothschild moment, i.e. the blood is running in the streets was cited in July 2009, De Rothschilds Moment in August 2010, and This is our Rothschild moment on June 6, 2013. Other financial moments include Minsky Moment and Lehman Moment.

Sunday, September 24, 2006

Beer, Banks and Bras. Dealing with the Thai Coup

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One might have expected a Mayer Rothschild moment. yes, that Rothschild who is famous for two quotes,” Give me control of a nation’s money and I care not who makes her laws” and his more famous, “Buy on the sound of the war-cannons; sell on the sound of the victory trumpets.” That kind of a panic simply did has not happened.

Sunday, July 5, 2009

Cheap Natural Gas?

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Gas at $4.42 per MCF looks cheap. Especially compared to $71 per barrel oil. It looks like a Lord Rothschild moment, i.e. the blood is running in the streets.

Monday, August 30, 2010

De Rothschilds Moment

Even in the midst of Apocalypse, things will get better.

Gonzalo Lira

Were not there yet. At the point where Baron de Rothschild investment advice applies, namely: buy when theres blood on the street. Thats some way off I think, for now anyway. But Gonzalo Lira reminds all recovering apocaholics that, even as things are getting worse, they will eventually get better. The quote is from a fascinating post on the Chilean experience of hyperinflation under Salvador Allende. I hadnt realised how bad it had got back then.

MXOM on High Alert. Details Inside.

Jun 06, 2013 15:36

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At times like this I keep thinking of Warren Buffet, the investment genius who built Berkshire Hathaway into the 8th largest public company in the world. “Be greedy when others are fearful” he is famously quoted. Going back further, 18th Century uber-banker, Lord Rothschild was immortalized with the words “buy when there is blood in the streets”. So where are the extreme values? What sector is so universally despised that there is almost nobody left to sell, and because of this reality it is a fantastic opportunity to invest. What else, but the precious metals mining industry. Its bullish percent index has collapsed from 70% bulls last October to its current 0%, its lowest in history. The Hulbert Newsletter sentiment index has never been lower at minus 34. The AMEX Gold Bugs Index’s Relative Strength is also at its lowest level. Ever Lower than at the depths of the 2008-09 global financial crisis, lower than the index’s 20 year bear market-bottom in 2000. This is our Rothschild moment. There is blood in the streets, and I think it is time to buy.

Henry Smyth: Is this the Rothschild Moment for Gold?

Submitted by rcwhalen on 06/28/2013 11:43 -0400

We’ve all been watching the selloff in the global gold market. Armies of chicken littles are in a frenzy due to suggestions that the Fed may be ending its quantitative easing, so I thought this is a good time to check in with my friend Henry Smyth of Granville Cooper Asset Management Ltd. (GCAM). Henry is a former Coutts & Co. banker and a very astute observer of the global financial markets. We spoke last week in New York.Chris

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RCW: So is this correction a normal reaction to the Fed? Or has the fact of QE magnified the volatility of gold (and everything else)?

HS: The shorts in the market are running out of short fuel. The decline in gold has been going on since late 2011 and is very long in the tooth. Sentiment against gold is virtually 100% right now among Western gold analysts. This is a Rothschild moment.

RCW: This is a reference to the famous dictum by Baron Rothschild: “Buy when theres blood on the street?”

HS: It is. There seems to be an expectation that the end of QE will be bullish for the Dollar and therefore bearish for gold. My view is the end of QE will be bearish for all those asset classes which require QE for life support and/or do not do well in a rising interest rate environment. That would include the bulk of US equity and fixed income markets.