Friday I established a new portfolio position — gold in the form of the SPDR Gold Trust ETF (GLD). And it accounts for just over 10% of the portfolio. That’s twice the normal 4% to 5% position I usually devote to new buys.
Long-time readers know I bought gold earlier this decade, before launching Controlled Greed. That was when gold was around $270 and my vehicle was the Central Fund of Canada (CEF), the closed-end fund holding gold and silver bullion, which was then trading at a discount. CEF would have been my buy this time, but it trades at a premium. So I went with the gold ETF.
I paid $91.89 and it ended the day at $93.35.
I’m torn about gold as part of an investment portfolio. Two people I admire greatly, the late John Templeton and Seth Klarman, have never been big on gold, or not for the most part. I’m sure Sir John owned mining stocks at times, even gold ones, but I’ve never read any comments from him liking the metal itself. In fact, he once said it just sits there and doesn’t pay any dividends. Klarman said a while back that gold tied up (read more)
Let’s call this what it is: A new bull market in stocks has emerged from the ashes of the financial meltdown and the deep recession that followed. And it’s signaling the onset of economic recovery. Free-market capitalism is more durable, resilient, and self-correcting than its detractors would have us believe.
But this is much more than a summer rally. It’s a new bull market heralding a new economic recovery. Free-market capitalism is trying hard to push back against Obama’s … [visit site to read more]


I wanted to show a quick update of the current SPY (SPY) (which is similar to the DIA and QQQQ) ETF chart to note two ominous bearish candles at the recent highs of $100.00. Let’s take a look.
This chart shows the entire run-up from the early March 2009 lows to the current highs a few pennies shy of $100 (1,000 on the S&P 500 Index (^GSPC)).
As price challenges this ‘magnet trade’ target, we see that the last two trading sessions have formed upside down doji candles, … [visit site to read more]

For any of those contemplating investing in the commodity markets, they need to be very aware that losses are part of the game. As Ed Seykota has taught so many commodity and forex traders, losses are like breathing. They cannot be avoided. If you are not having losses, either you are not trading or you are risking way too little. There is no way around it!
The Fact of life is when you are trend following, you will have losses. If you think you are going to prevent them, don’t even … [visit site to read more]

The good times are back!
U.S. GDP declined at a mere 1% annualized rate, after inflation, between April and June.
Consumers only cut back spending at a 1.2% annualized rate during the same period.
Barry Norris, a partner at Argonaut Capital in London, explained how the world economic recovery “could be V-shaped after all.”
To top it all off, the “cash for clunkers” program sparked an auto shopping spree. Dealers moved 250,000 cars off the showroom floor in a few short days. … [visit site to read more]
