MORNING BRIEFS

*GOLD is trading at 1004 in futures market. It remains to be seen if it can break the all time highs of 1033 hit in March of 2008. Word on the street is that GOLD is rallying due to China buying up all the metals it possibly can. I tend to think it is more speculation run on the IMF getting their ducks in a row to sell the 900million worth of GOLD that they have. The US gave them permission a few months ago. IMF needs cash to help bail out the world economies. So buyer beware at these prices. But hey, anything can happen right? GOLD at 1050?

*what does Warren know that I don't? Absolutely nothing. I have been telling clients for months to SHORT the market or stay in cash. I don't believe Bonds are the play either. But I don't have the kinds of money that Buffett has to risk. So CASH is king and I want to stay KING!
Buffett carefully shifts Berkshire from stocks to bonds
Preparing for a shaky U.S. economic recovery that could take a while to pick up momentum, Warren Buffett is rebalancing the investments of Berkshire Hathaway. He is scaling back investment in stocks and putting more capital into corporate and government debt. "We are not out of problems yet," Buffett said. "We have got to get the sputtering economy back so it is functioning as it should be." The New York Times (07 Sep.)

Slight rebounds driven by speculation, U.N. agency warns
The economic rebound showing up in several parts of the world is supported by little more than speculation and will be temporary, the U.N. trade and development agency said in a report. "The synchronized rise in a wide range of markets that do not normally move in the same direction shows that what we have been seeing in the first half of the year is driven by speculation," said agency representative Heiner Flassbeck. "What is going on is speculation on a recovery, an attempt to anticipate a recovery. But it is a fiction, it is not there yet." Forbes/Reuters (07 Sep.)