3/30/12 Coxe Notes

· What’s going on in China is of great concern to many. Don’s had lots of discussions with folks recently about China. Doesn’t think there’s anything here to be unduly concerned about.

· Very aggressive move to devalue the yen. This means that all economies are on track

· What’s going on with Central Bankers is so far beyond what they have done before, so extreme from what they have done before that you can’t even speculate how bad it will be. Just assume it will be bad. This was the consensus of several other financial minds that Don has been connecting with recently.

· Thinks more balanced growth story between Asian countries beside just focusing on China growth alone is good. Factor in the fantastic monetary expansion going on.

· Still regards Eurozone as being crisis prone. There will be other bailouts. Believes the dye is cast that Merkel will be able to sustain enough votes for more deals. Expansion of liquidity in Europe will continue.

· This has been a bit of constraint on the price of gold. Believes the huge rally in gold last year was due to what was happening in the Eurozone and the drop in the Euro. So if there is no Euro crisis this year that will be some constraint on the rise of gold. But what’s new is that with Japan pumping money like mad, there will be more and more printing going on. Therefore rather than gold being driven by fears in one part of world, the fears of those with something to protect will cause gold to rise as people become more aware of what’s going on. Has to believe that the next rise in the gold will be very very significant. Admits that he doesn’t know when that will happen. Right now the feeling is that with all the banks are doing we are going to have good economic growth. Thinks that reality will cause that view to change somewhere down the road.

· Economic growth will not have that kind of vigor and stamina with it as consumers just don’t have the excess money to spend like they did in past times.

· Don doesn’t believe in sell in May and go away this year. Thinks this time it will be different.

· The amount of corn we will be producing in the US this year will be spectacular. But thinks there will be less planting of soybeans. Thinks farm incomes will remain high.