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I made good on my threats today, and took everything down to the 30% level on my personal accounts.
I was up an average of almost 5% across a number of different portfolios and I finally said “enough is enough.” I am keeping 30% invested, with the equal expectation that we could hit a precipitous downdraft in the precious metal sector at any time, just as we could shoot past $2,000 gold in an eye-blink.
I care no more, as at this point risk avoidance has become very important to me. If that means I miss the next $200 in gold on 70% of my portfolio, well so be it. It’s very possible we could see a break past $50 in silver as well, and again, I’ll have no nonsense from any of you about it. Really, I mean it. Just shut up now.
And yes, that means I sold large chunks of AAU, AG, AUY, ANV, EGO, EXK, GDX, GDXJ, GG, MVG, NG, NGD, NXG, PAAS, RGLD, SIL and even beloved SLW.
And I blew out the rest of my NUGT as well.
And no, I am not abandoning the PM’s as a theme now, and won’t abandon them should they continue to skyrocket in flight to many more afternoon delights this late summer. I am willing to wait for them, however, and to examine “other areas” whilst they frolic about like mad sturgeon on lady’s night at the Aquarium.
One of those “other areas” includes my old friend, Mr. Skiffles — SKF. Along with his rebrobrate alchoholic brother, FAZ-tard, I believe Mr. Skiffles will be getting some nice exercise this second half of the year. One of the reasons is the behavior of BAC, and now, most recently, the troubles of GS, and it’s Waspy rival MS.
Another is the critical structural problems of Europe erupting again like plague boils on the carcass of its major banks. This is a contagion that may yet again bolt across the Atlantic and may even explain the impolite selling vigor in some of our larger institutions. Will the Fed be there to save their lying souls once again?
Too big to fail, you say? Maybe, but while “fail” might rhyme with “bail,” I wouldn’t be too sure equity holders won’t be left holding an empty bucket this time around. Be warned, friends, storms approach.
Peace be upon you.
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