Asset Allocation

Gold’s value is not determined by world events, political turmoil, or industrial demand. The only thing that you need to know in order to understand and appreciate gold for what it is, is to know and understand what is happening to the U.S. dollar. Gold is priced in U.S. dollars and since the U.S. dollar is in a state of perpetual decline, the U.S. dollar price of gold will continue to rise over time.

From my perspective, true diversification is more than just a balance of conventional investments spanning cash, equities and fixed income. There’s a vast universe of alternative investments out there that may suit your risk profile and are worthy of a closer look. Let’s discuss.

Here's a definition of precisely what constitutes a melt-up: “A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don’t want to miss out on its rise, rather than by fundamental improvements in the economy.“

This article compares the returns of gold stocks and gold bullion in bull markets and explains how gold stocks outperform thanks to profit expansion, and shows why there might be more upside for gold miners to come.

Now that stimulus is poised to start being reduced we can expect a choppy stock market to emerge imminently, if it hasn't already. Here's about where we stand now.

Currently, investors believe “this time IS different”  but “this time” is different only because the variables are different. The variables always are, but outcomes are always the same. The increase in speculative risks, combined with excess leverage, leaves the market vulnerable to a sizable correction.

Diversification allows us to either reduce risk for the same level of expected return or increase expected returns for the same level of risk and below are arguments for diversifying across stocks, across countries, and across asset classes.

The stock market bubble continues to inflate, while the price of silver remains range-bound but a reversal in those two asset classes is coming, and based on history it could be one for the record books. In fact, you might want to refrain from sipping hot coffee while viewing the tables below.

The stock market is overvalued, and history shows that gold tends to rise in most stock market crashes, so the most likely scenario is that gold rises and stocks fall - and probably dramatically. 

The fundamentals overwhelmingly point to higher prices for gold, silver, and miners. Here are 3 reasons why: