My experience is that when gold corrects for longer than two to three weeks it's going to build a new base for a lot longer in this ten year (so far) bull market. So I cut way back on "paper gold" positions on the rally starting a week ago. "Paper gold" is gold stocks and ETFs of both bullion and stocks. I've still kept about 25% of the paper gold and as always I kept 100% of the real stuff in storage. I basically broke even or made a small amount on the additions I made in October and November.
I'm not really clear on what's happening, but with sentiment ripe for a stock and gold decline and a bond rise, I feel more comfortable with about one-third cash, one-third all types of yield vehicles, and one-third various gold and inflation hedges including the hedged stock funds I've talked about here. Year end is a logical time for changes for many human reasons, so I prefer to see what "everyone" decides to do for 2010 before I decide if they are right or wrong.
Recent Comments