Hedge Fund Manager Interprets Inter-market Relationship

Sept. 10, 2009 - PRLog -- Bret Rosenthal, Principal of Rosenthal Capital Management, and founding partner of the Fortune's Favor Family of Funds, has been warning of the inevitable rise of hyper-inflation at a time when a jobless recovery will lead to the obvious quagmire of a stagnant economy. According to Rosenthal, last week's price movement across a broad front foreshadows the deleterious economic environment ahead:

"The US$ broke down against a basket of currencies last week and in doing so took out major long-term support. The weakening US$ trend has been going on for a while as the Fed continues to print currency out of thin air in an attempt to stimulate the economy. The latest magic trick, and perhaps the last straw, has been the monetization of treasury debt. The Fed's buying of government debt at a time when the Obama administration continues to inflate the deficit has led to a loss of confidence in the US$ as the reserve currency of the world. This corrosion of confidence and abuse of Fed powers is the leading cause of the hyper-inflation trend. Remember, inflation is a currency event not an economic event."

The events of the past week could be troubling but not to Rosenthal who believes he is prepared for this development and welcomes the trend. A major investor in the precious metals realm Rosenthal says, "Gold, the key inflation sensitive commodity, rallied strong last week as did the price of silver. Tuesday, September 1st, was perhaps the most telltale day when the inflation sensitive precious metals complex closed higher in the face of a stronger US$.”

Rosenthal feels confident about his market positioning. Still, he remains humble: "I feel at this time we are compelled to clear up a little misunderstanding. We should give credit where credit is due. Yes, Ben Bernanke has been able to create ‘shoots’ in the economy. We stand corrected and beg Ben's forgiveness for our ever doubting his ability to create ‘shoots’. We would, however, respectfully request he visit his ophthalmologist or perhaps a neurologist to discuss his confusion recognizing colors. The ‘shoots’ he sees are real but they are GOLDEN not green."

Rosenthal Capital Management runs the Fortune’s Favorite Family of Funds, including Fortune’s Favor I, Fortune’s Favor Precious Metals and Fortune’s Favor Offshore. For more information visit www.rosenthalcapital.com.

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Rosenthal Capital Management runs the Fortune’s Favorite Family of Funds, including Fortune’s Favor I, Fortune’s Favor Precious Metals and Fortune’s Favor Offshore. For more information visit www.rosenthalcapital.com.