Again, we don’t blame Einhorn for using his bully pulpit to talk his gold book. And he might be right. Others are making big bets on the shiny rock. And Gold is up about 11.4% so far this year, as the S&P and Dow have fallen more than 3%. Still, we just wanted to call the book talking what it is.Again, the question isn't answered. If everyone does it, then why make a big to-do about Einhorn doing it too?
There seems to be a different standard being applied here. Maybe it's because goldbug patter has a deeper root in alternate academia, which is expected to show some disinterestedness. Of course, there's another explanation that's handy. Gold as an alternate investment comes with a perspective which doesn't fit too well with typical Wall Street book-talking, whether real or thinly-disguised. It is harder for an investment firm to keep up a united front when the fellow placed at the desk by the photocopier keeps hammering away about the fiscal troubles of the mighty U.S. economy. Of course, this different perspective fits hand-in-glove with gold's historically low correlation with standard securities; that idiosyncracy is precisely what makes the metal a good hedging tool. Nevertheless, the gold guy doesn't quite fit in. And, of course, real or potential misfits are held to a higher standard because they're instinctively distrusted.
Oh, wait. My theorizing led me to forget one snippet that's a more succint explanation:
As a point of fact, it’s incumbent on us to point out that right now deflation should be the boogie man we fear, not inflation.There we go. Einhorn isn't just a doomsayer, he's the wrong kind of doomsayer!