Gyroscopic Investing

We are most certainly living in interesting times.

Holding cash returns a loss driven by inflation, currently at 8.6%. Long-term Treasuries are down 22% due to higher interest rates and more to come. Equities, as measured by "VTI", are down 16%, with further decreases likely as the economy continues to cool.

What is a PP investor to do?

I am thinking that overweighting gold may be the best course of action.

Gold has returned a scant 0.7% YTD return. My thinking is that gold will further increase as more and more investors take a defensive position, in light of current and future economic conditions.

Your thoughts?

I think there are just to many ways to bet against the markets today …

Commodities and gold are not following each either as an inflation hedge .

Unless something seriously happens to the dollar I don’t see any fuel for gold …

EdwardjK wrote: ↑Fri Jun 10, 2022 4:38 pm
What is a PP investor to do?

Wait it out

mathjak107 wrote: ↑Fri Jun 10, 2022 4:40 pm I think there are just to many ways to bet against the markets today …

Commodities and gold are not following each either as an inflation hedge .

Unless something seriously happens to the dollar I don’t see any fuel for gold …

Europe is beginning to raise rates, if they keep up with the US that will make a difference for the dollar.

EdwardjK wrote: ↑Fri Jun 10, 2022 4:38 pm I am thinking that overweighting gold may be the best course of action.

Gold has returned a scant 0.7% YTD return. My thinking is that gold will further increase as more and more investors take a defensive position, in light of current and future economic conditions.

Your thoughts?

If this bout of inflation is about scarcity instead of debasement of the dollar...then maybe one should consider the oil commodities (at least if the slick folks at the Animal Spirits podcast are to be relied upon).

On the other hand, I've also heard the idea floated that the Government may well let inflation run higher to pay down their debt, in which case the debasement hedge of gold might kick in.