If you’re not paying attention to the temperature of the water, you soon might find yourself gently dozing off and then onto the dinner fork of a cannibal trying to eat you.
For the 5th week out of 6, both gold and bonds have measuredly outperformed stocks. The equity performance hasn’t been dreadful. As a matter of fact, to the layman, the underperformance to risk off assets is likely imperceptible — but it’s there.
For the day both retail and banks are barreling towards rack and ruin, while robust gains are found in defensive sectors, such as gold, utilities and bonds.
Regarding gold stocks, the sector isn’t close to being overbought — according to Exodus.
As we drift into the genteel and balmy summer climes, how much gold do you own? If none, are you merely ignoring reality or simply trying to become a billionaire this year through unprecedented and cravenesque trading?
I recall the days of past summers quite vividly, always appraising the months ahead with juvenile optimism. I’d ignore all of the warnings given to me by older gents, who plainly told me to rent a beach house for the summer and forget about stocks. I was intent on becoming a billionaire right then and there, canceling family vacations, working late hours to figure out the market puzzle.
The weakness in the indices never resonated with me, since my bullish bias was strong and it blinded me to obvious facts. I’d say, now with the benefit of hindsight, that I should’ve taken those summer vacations — because the overall tenor of those months was dreadful and completely uneventful. I’d spend the balance of the year making up for lost ground — all because I wanted to press my spring gains through the low volume, dead summer months.
Top picks: GLD, TLT
The post How Much Gold and Bonds Do You Own? appeared first on Trading with The Fly.
June 07, 2017 at 12:05AM
from Dr. Fly
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