I had a lot of comments and emails about my gold posts yesterday, good stuff.
At this point I am doubtful about huge gains coming from here. I understand the fundamental case, it makes sense to me and my clients all have exposure so they will benefit if gold is still in the easy-money phase of the trade.
I was asked about gold last night during my CNBC Asia interview and I said it's diversification is always a good idea. "Mr.Market" left a good little nugget about the commitment of traders number not being so great these days. That has a chance of mattering a lot.
My commentary is more about caution and not about selling out. If you own gold you should have some opinion about what is a reasonable neutral weight and overweight. Beyond reasonable and you invite real problems.
Long time readers know my unyielding belief in the energy theme. That does not mean 20% is in energy. Gold is working and a diversified portfolio should have some. No matter how much you believe in gold right here I think you should seek out the bear case if for nothing else than to better understand your own bullish outlook (if that is where you stand).
Some semblance of balance is always a good idea.
Wikinvest Wire
1 comments:
Roger I don't understand why you doubt the move in Gold. Also, who cares about the fundamental reasons? Look at the chart that is what we call a bull market, and charts don't lie. Gold $1000 you heard it from me. It will correct near term, but shorting gold is imho not a good idea. It is what it is, and the trend is your friend. Here is a better question; will oil hit $100 before gold hits $1000? Don't take this personal I still love your blog.
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