Subprime Securities Take a Bath While the Precious Metals Are Stronger

This graph is from Agora Financial http://www.agorafinancial.com/ this morning. We may well be in for another wave of pressure from the debacle of the sub-prime asset loans failures and bankruptcies. Certainly, the event has yet to play out fully.

The event is putting pressure on even the more secure mortgage lenders. It is spilling over as never thought possible. All are under pressure and the pressure appears to be building.

Therefore, the puts on the housing builders index HGX are likely to continue to increase in value. I like the September and December puts in particular.

Gold this morning is at $666.50 and Silver is $12.90. Both are holding higher. The mining stocks are moving upward, as well. Examples: AGXM 1.44; CDY 1.78; CEF 9.27; DROOY 0.7388; EGO 4.59; GFI 17.45; GSS 4; HMY 14.73; IAG 8.32; KGC 13.35; KRY 3.90; MRB 4.68; NEM 41.40; NTO 5.91; PAAS 29.68; RNO 5.24; SSRI 36.69; XRA 3.43.

Make your day great by trusting in the Lord by obeying Him and getting your joy from Him.

Best to each, Doug