My core thesis was to be long TLT until the yield curve inverted. Right now, the spread between the 2s and 10s is 90bps, the lowest since 2007.
If you take into account the .26 dividend TLT has paid on a monthly basis, it’s currently at record highs. The ark has never been sturdier, weathering the choppy seas of global central bank over planning.
Over in Europe, the ECB bought Volkswagon bonds today, in the 2nd day of corporate bond buying action. The British gilts and German bunds are at record low yields. The crushing of the income oriented investor is at hand. The indelible march towards helicopter money is ongoing, presently vigorous and without abatement.
Gold is where money should be allocated. In this batshit environment of zero percent corporate bond offerings, I can’t help but to imagine the stampede of money that will be flooding into gold when this all comes to a head. And it will, rest assured.
Enjoy your stocks. “The Fly” is content playing the slow game here, methodical and with purpose in mind. For now, I am allocated 25% TLT, 25% gold and gold miners, 50% cash, awaiting oversold signals in Exodus in order to allocate money into equities.
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silver is more appealing to me from both a relative basis and doomsday usefulness. silver makes harder spear heads. FWIW
Struggling to get long gold. I really want to, but on a pullback nearer to the 200DMA. There are probably a lot of people like me and that’s why it won’t happen. And if the stock market falls out of bed before it can test the 200DMA that could mean they just meet higher.
I’m thinking if gold looks like it’s going to close above 1260 today I’m going to get long for a long term hold.
I hate to chase when I’m trading. But I am not trading. These are positions built in stone.
So far so good. Been making money all year thanks to Exodus.
Are you planning to maintain this allocation until the yield curve inverts?
no, I will sell.
I can see how this could work out well. I’m might have to throw some lottory ticket money on OTM GLD calls. Long gold is not something I’m used to either.
Where is Senator Gint when you need him?