Gyroscopic Investing

By looking at today's starting gold price, the Fed easing was not priced into gold because it's getting wacked and appears to be at a level heading down much further then anyone will want to think or admit. So all of us PP guys will have to wait it out. If there is a silver lining, you can buy more gold cheaper now because rebalancing looks to be coming earlier this year if the price goes down much more. Selling some stocks at all time highs and buying gold lower is how we play the game. Over time, this has worked gains by locking in profits and lowering volatility.

Gold hit $1,180 in late June and was at $1,260 in less than 48 hours....a strong show of demand at that price. I think it will break through at this point and a flood of stops will drive it to $1,100. I'm not selling because selling after this move would be panic selling, generally a no-no.

I'm not a happy camper though. I'm about 50% in global stocks so at least that side is holding up. That percentage is drifting more in favor of stocks every week it seems.

The PP reminds me of a wide receiver whose lost both his hands. He can run the correct route, but can never catch the ball. Left hand is gold and right hand LTTs.

Good thing he has four hands.

annieB wrote: Good thing he has four hands.

Equities and Cash are the legs. The PP still has no hands...

buddtholomew wrote: The PP reminds me of a wide receiver whose lost both his hands. He can run the correct route, but can never catch the ball. Left hand is gold and right hand LTTs.

Hey, Budd. That was very MT-like!

Reub wrote:

buddtholomew wrote: The PP reminds me of a wide receiver whose lost both his hands. He can run the correct route, but can never catch the ball. Left hand is gold and right hand LTTs.

Hey, Budd. That was very MT-like!

I can only wish to be as elegant and thoughtful as MT.

On another note, I did some rough analysis around the daily movement of GLD and the end of day returns for the portfolio over the course of this year. It appears as though GLD and the PP move in tandem with each other from month to month and similarly on a daily basis. The relationship holds true even as the allocation to gold has declined. Can someone produce more rigorous analysis and confirm or deny?

Gold is close now to the price I sold out my bullion coins to pay down my mortgage a few years ago. I was crying for selling too low but now it seems that it didn't matter.  It should be near a bottom now or so it seems.

buddtholomew wrote:

Reub wrote:

buddtholomew wrote: The PP reminds me of a wide receiver whose lost both his hands. He can run the correct route, but can never catch the ball. Left hand is gold and right hand LTTs.

Hey, Budd. That was very MT-like!

I can only wish to be as elegant and thoughtful as MT.

It is true that the wide receiver had lost both of his hands and most thought that his career was over...except for the cheerleader with the heart of gold with whom he shared an unshakable long term bond.  He placed stock in her, and treated time with her like cashing a check drawn against an account of future joy.

Regardless of whether his team was on defense, offense, special teams or the clock had stopped, he felt like she provided him with protection and safety.

She balanced him, and when he got out of balance, she re-balanced him. 

Now that brought a tear to my eye!

Touché

Desert wrote:

MediumTex wrote: It is true that the wide receiver had lost both of his hands and most thought that his career was over...except for the cheerleader with the heart of gold with whom he shared an unshakable long term bond.  He placed stock in her, and treated time with her like cashing a check drawn against an account of future joy.

Regardless of whether his team was on defense, offense, special teams or the clock had stopped, he felt like she provided him with protection and safety.

She balanced him, and when he got out of balance, she re-balanced him. 

THAT was good. 

"long term bond" ... that was my favorite. 

MT, ever thought of just hanging up the whole lawyer thing, and doing some writing?  I mean, besides PP books?

7,650 posts.  I'm doing it baby!

M.T. Just out of curiousity do you use your lawyering powers for good and not evil?

Oh, and back to the thread....finding the bottom. Jim Rickards, whose opinion I value, is saying that right now Gold is below intrinsic value. Of course that doesn't mean that it can't fall any farther however he is saying that it is a bargain.