The July-August period was very profitable for the model portfolio. Three of the four segments saw substantial gains, and the total gain for the portfolio jumped over 3.5% in the past 30 days. Much of this was due increases in precious metals prices as well as tactical hedging that we put in place on 7/27/11. That hedge nearly doubled in value as markets caved after the debt deal and credit downgrade.
This month’s keynote focuses on resetting our thinking after the latest blowout. Some very important big picture changes took place in the past month and we outline those and what the effects are likely to be moving forward. Despite the past 3 days of victories in the equity markets, make no mistake this is nowhere near over.
In energy, we dovetail the recent move to effectively double the fuel standard with the constant insistence by energy market ‘insiders’ and government types that we’re literally drowning in oil. Something isn’t right here and we tear these arguments apart.
In metals, we look at gold’s proxy performance for the stability of the financial system now vs. 2008 and we demonstrate why what just happened in the markets was nothing like 2008 despite the media’s persistent rhetoric to the contrary. We also discuss the economic ‘kill-switch’ built into the debt deal and the economic equivalent of a commercial signal failure. If you want to know the intricacies of how everything is bolted together, this is information you don’t want to miss.
In the market update, we show our long-term analysis from May 2009. It was right on target and has developed precisely as outlined over two years ago. This has big implications for anyone holding paper assets and needs to be part of everyone’s decision-making process.
This is probably the most important issue of CI that we’ve ever released. If you’re a subscriber or client, take some time and seriously digest its contents. If you’re on the fence, consider becoming a subscriber. We realize times are tough and as such have lowered prices to reflect the troubles people are having financially. This is much more than just a stock-picking newsletter; much of our research pertains to the general economy and how those developments affect consumers at a variety of levels. If you find our work beneficial, please refer us to a friend or colleague; it is how we are able to continue providing this analysis.
To Subscribe, Click Here
