HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
Today “appeared” to be a great day in the market. The S&P 500 was up 1.9%. BUT, the US dollar index was down 0.78% (see weekly chart, page 2). Thus a full 40% of your gain was really just smoke; numbers that looked good, but on closer examination, weren’t nearly as stellar as they appeared.
The precious metals went ballistic, totally bonkers. Gold was up $55, about 4%, to a new high (see chart of GLD, page 3) and silver was up $1.80, a gain of almost 7%.
Today’s action can be interpreted in two ways. First, since the market tends to anticipate the economy by 6-9 months, it could mean that happy days are here again, that by next summer unemployment will be down, housing will have stabilized, and the worst will be over. Second, it could mean that people are in a near-panic to trade their rapidly-depreciating US dollars for real assets, such as the precious metals, stocks, commodities, art and collectables. Unfortunately, I believe the later is more likely.
Again, I recommend that the core position of your entire investment portfolio be US-minted Gold Eagles in your personal possession at the safe deposit box (Over the years, Stephen Davidson at Blanchard & Co has given me good service. 888-830-2646. Again, I receive no commissions for this recommendation. I do it as a service to you).
In your brokerage account, the precious metals can be owned via GLD, IAU, SLV, GDX and GDXJ. I again also recommend your position in the precious metals be as much as you are comfortable with.
Those of you who have bought the precious metals are now sitting with nice gains.
I went into today leveraged long the precious metals. Today was my most profitable day ever in the stock market. On a personal basis, it feels really good. But as a student of history, and a citizen of the United States, I am more sanguine.
RMD
Site by Delta Systems powered by ExpressionEngine