below are my notes from Coxe's call today (Friday, 10/1/10):

10/1/10 Coxe Call

·Stock market has developed tremendous momentum which Don admits he didn’t see coming (makes him quite uneasy).

·Brazil is the big winner….brazil’s minister talked about global currency wars recently

·What’s happening to Brazil is part of worldwide phenomena involving bear market in us dollar

·US passing incredible bill punishing china (mandating that china must evaluate remnebi up when other countries are reevaluating their currencies down)

·Brazil is modernizing at an amazing rate.Brazil now has double digit interest rates to fight inflation which means that people are buying cheap currencies and investing in reals which is unsustainable.

·This is exactly what happened during the depression (?).The fact that there is trading in currencies around the clock means that something is going to go wrong.

·If what we are going to have is collapse of paper moneys and currency wars – this means that commodities will do well of that he’s sure.

·Move up in gold has not been all that big (6% over last 13 weeks) given the big move in the stock markets.Still feels comfortable that we want to have a strong exposure in gold area with all the questions being raised about paper money.

·With this kind of action the Fed won’t be able to keep these incredibly low interest rates.

·Don is worried and does not feel comfortable about the S&P.Stocks generally do well when you have stability which is not what we are seeing now.This is the world of the speculators and short time traders.

·Now also is the spectacle of the foreclosure market getting freezed up (e.g., JP Morgan going to stop foreclosures, courts all tied up with lawsuits, etc.)This will create more disorder and make it more difficult for folks to get mortgages.There will be no bottom then to housing market now.

·Chinese stock market it the only one not participating in this rally.

·What’s going on now reminds Don of the 70’s which was not a good time for the stock markets.While this appears to be a good time for traders the level of risk is increasing.