Another Golden Lesson For Asset Allocation and Rebalancing

Maybe it’s the sell recommendation from Goldman Sachs. Or perhaps the trigger is the general fear of a sharp slowdown in China’s economy that will take a toll on global GDP. Whatever the reason, the price of gold yesterday suffered it’s biggest drop in 30 years. For gold bugs who loaded up on the precious metal, it’s been a rough 24 […]

The New Great Rotation: Commodities into Bonds

You probably heard the chatter over the past few quarters: “The Great Rotation” was about to unleash a new leg up in Equities. Bonds were going to be sold, equities purchased, and a new leg up was starting. The story goes something like this: U.S. Treasury Bonds had enjoyed a 30 year bull market, and […]

2013 Investment Preview

This post originally appeared on Seeking Alpha last week.  I enjoy a wide following there, and I appreciate the opportunity to participate in their annual series.  As I note at the beginning of the interview, this is a very valuable resource.  I share the interview with readers of “A Dash” with the permission of Seeking […]

L’Age d’Or – Part 2: “Golden Memories”

The Return of Gold… Since the replacement of the gold standard with the dollar standard, the gold price has fluctuated widely. In January 1980, the gold price reached a high of $850/ ounce reflecting high rates of inflation and economic uncertainty. Subsequently, the recovery of the global economy saw the gold price fall for nearly […]

L’Age d’Or – Part 1: ‘A Barbarous Relic’

In Germany, gold is now available from vending machines in airports and railway stations – Gold to Go. Shoppers can buy a 1 gram wafer of gold or a larger 10g bar. Seeking safety for their savings, individuals have purchased 150 tonnes of gold, mainly in the form of coins. Investors poured money into special funds […]

Big Moves Coming in December, January and February

Well how was that for the start of a new intermediate cycle? While many analysts were calling for continued losses or even a market crash I repeatedly warned traders that an intermediate degree bottom was coming and that markets routinely rally violently out of those bottoms, often generating 5-8% gains in the first 12 to […]

The Odds Are High the Bottom Is In

In my last couple of articles I mentioned that I was waiting for the S&P to form a swing low as the first confirmation that an intermediate degree bottom had formed. That swing is going to form on the open Monday morning. Typically the stock market will rally fairly aggressively out of one of these […]

Is Gold Cheap or Expensive? Look to China and India

Click to enlarge: Source: Bloomberg Is Gold cheap? Pricey? Somewhere in between? I have a hard time answering that question because I have no frame of reference. With equities, I could look at earnings and/or dividends, sales, book value, etc. to determine relative valuation. With bonds, interest rate, credit rating (and whether its callable) give […]

Gold Versus Inflation

Click to enlarge: ˜˜˜ Source: Merrill Lynch   We have pointed this out before, but its worth repeating: As Merrill Lynch pointed out earlier this week, “the link between inflation and gold is very limited.” The correlation between Gold and Inflation is not what most people believe it to be. This variant belief could be […]

1 2 3