Gyroscopic Investing

I think it's hard to make the case that any commodities or bonds are cheap right now.

One asset class that looks like it might be cheap are selected equities with low debt, low P/Es and high dividends.

Housing in some markets might be cheap.

Certain kinds of labor are probably cheap right now.

What asset looks cheap to you right now?

MT,

I think gold stocks are cheap right now.  Since the panic liquidation in '08, the Gold/XAU ratio has been off the charts:



Historically, a ratio at 5+ is a buy.  Currently it's at 7, was as high as 11!  Input costs (oil, labor) are staying low relative to output costs (finished gold price).  Sooner or later it will be reflected in valuations.  

I will let you know as soon as I sell something from my VP.  Historically that has been a very good indicator that is about to take off 

Wonk,

You're right.  As we have discussed before, I agree with you that gold stocks probably are cheap right now.  (I don't know why I didn't think of that in the OP.)

Gold stocks really haven't participated in the gold bull market the way one would think.