Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts
Wednesday, September 28, 2011
European Union Debt Crisis
The majority of the global economic discourse these days revolves around a central thesis; too much debt, and burdensome deficits. To some degree, the debt problem contributes to the deficit problem because of the requirements of servicing the debt. The actions of policy makers are decried as lacking in leadership as they stumble around seeking politically acceptable ways to resolve these issues, while at the same time being economically effective in really addressing the issues. The results have been skewed towards being politically acceptable via some form of “kicking the can down the road”. The economic realities suggest the end of the proverbial “road” may be near. The debt issue is more of a global issue than regional issue; or at least global with respect to the indebtedness of the western developed economies. Questions such as whether Greece remains part of the European Union seem a little flat when one considers that regardless of whether Greece is or is not part of the EU, the outcome of resolving this issue in any manner other than some sort of default is unlikely. Because of the integrated scale of connectedness, I doubt anyone, or any institution really fully knows what the unanticipated consequences and effects will be. Consequently, talk of “ring fencing” or containment of these issues smacks more of intellectual arrogance than a sober acceptance of the magnitude of the problem. I suspect that after all the “shucking and jiving” is done what we a headed for, and what seems inevitable, is a global restructuring of monetary regimes with some attempt at a functional global monetary unit, be it a basket of currencies, or for that matter a basket of commodities. Along the same line, it would seem that the only effectively managed way out of this global financial mess will be some sort concerted global effort to inflate away the real value of the debt burden.
Tuesday, September 06, 2011
Pending Global Financial Crisis
The situation in Europe is very serious. From my research and analysis, my conclusion is that a Greek default is already “baked in”. If this situation were limited to a Greek insolvency, it would probably be manageable by the EU. Unfortunately, there are a number of other European countries that
represent a much larger potential problem because of the size of their economies and banking system, Spain and Italy being among them. I have even heard reports that there are some German and French banks that may have some capital adequacy issues. Fundamentally, the real problem is the potential contagion effect that arises. A number of factors are at work here. One is that bond investors start to demand higher interest rates because of the greater risks they perceive in the markets. This only makes the problem worse because it increases the cost of borrowing specifically for countries like Greece. This in turn, makes their financial situation even more challenging. More generally, it would be reasonable to expect borrowing costs to increase because of greater
demand for scarce capital. So far governing bodies in the European Union such as the European Financial Stability Fund, the International Monetary Fund, etc, have been trying to make capital available, or restructure existing debt. While these efforts have taken a potentially explosive situation and put it on a slower burn, they have not been effective in resolving the issues. As in the
United States, even if a theoretically economic effective solution were possible, political differences interfere with the implementation. In my opinion, there will be sovereign defaults. However, even if we are “only” talking about write downs of loan balances, the question arises of the impact on the banking system’s in the individual countries, and globally. Here we have another aspect of the potential contagion effects because banks and insurance companies throughout the world, including the United States, hold these impaired assets as part of their own investments. Moreover, a major risk factor which is very opaque, is what “derivative” exposure these various institutions hold. Derivatives are complex artificially constructed investments that may magnify greatly the risk on the books of these major financial institutions.
So far, one response of investors has been more what I would call a conditioned reactive response, rather than a response that reflects economic fundamentals. That response has been to migrate toward what are perceived to be “safer” assets. These have included US government bonds and
precious metals. This has helped hold down interest rates of US debt. In my opinion, while some position may be warranted in US Government bonds, the US financial system is on the precipice of a disaster waiting to happen. It should be kept in mind that one of the largest; if not the largest holder of US debt is China. They are increasingly expressing misgivings about the US financial situation. We are also seeing an increasing migration of capital into assets like gold. This would be capital that presumably would have been available for additional debt purchases. Both from the governmental side as well as the banking and financial institution sides have capital adequacy issues.
At this point I do not see much that gives me encouragement of a constructive resolution to these issues. In my opinion, at least for the near to medium term future, we are looking at increasing financial and social turbulence. The historical evidence suggests that the way in which policy makers will focus their efforts will be to try to inflate their way out of extreme over indebtedness by creating more and more money. Ultimately this will probably not work, and if I were to have to speculate, I don’t think it out of the question that within three years there will at least be serious discussions among global policy makers about the creation of new currency regimes.
Since we are in uncharted territory on a global scale, this is a time a great uncertainty in which events could move more or less rapidly depending on what the precipitating factors are. For example, the effects of a major natural disaster, a terrorist act, or who knows what else, are impossible to determine in an already fragile global financial system.
In my opinion, and reflective of the strategy we are currently being guided by, the best defense will be diversification which is targeted toward addressing the realities of the geopolitical and economic environment for the foreseeable future. This doesn’t mean there won’t be some volatility, but the objective is to be better able to weather the storm, retain value, and take advantage of the opportunities that will arise in what appears to be an oncoming global financial crisis.
represent a much larger potential problem because of the size of their economies and banking system, Spain and Italy being among them. I have even heard reports that there are some German and French banks that may have some capital adequacy issues. Fundamentally, the real problem is the potential contagion effect that arises. A number of factors are at work here. One is that bond investors start to demand higher interest rates because of the greater risks they perceive in the markets. This only makes the problem worse because it increases the cost of borrowing specifically for countries like Greece. This in turn, makes their financial situation even more challenging. More generally, it would be reasonable to expect borrowing costs to increase because of greater
demand for scarce capital. So far governing bodies in the European Union such as the European Financial Stability Fund, the International Monetary Fund, etc, have been trying to make capital available, or restructure existing debt. While these efforts have taken a potentially explosive situation and put it on a slower burn, they have not been effective in resolving the issues. As in the
United States, even if a theoretically economic effective solution were possible, political differences interfere with the implementation. In my opinion, there will be sovereign defaults. However, even if we are “only” talking about write downs of loan balances, the question arises of the impact on the banking system’s in the individual countries, and globally. Here we have another aspect of the potential contagion effects because banks and insurance companies throughout the world, including the United States, hold these impaired assets as part of their own investments. Moreover, a major risk factor which is very opaque, is what “derivative” exposure these various institutions hold. Derivatives are complex artificially constructed investments that may magnify greatly the risk on the books of these major financial institutions.
So far, one response of investors has been more what I would call a conditioned reactive response, rather than a response that reflects economic fundamentals. That response has been to migrate toward what are perceived to be “safer” assets. These have included US government bonds and
precious metals. This has helped hold down interest rates of US debt. In my opinion, while some position may be warranted in US Government bonds, the US financial system is on the precipice of a disaster waiting to happen. It should be kept in mind that one of the largest; if not the largest holder of US debt is China. They are increasingly expressing misgivings about the US financial situation. We are also seeing an increasing migration of capital into assets like gold. This would be capital that presumably would have been available for additional debt purchases. Both from the governmental side as well as the banking and financial institution sides have capital adequacy issues.
At this point I do not see much that gives me encouragement of a constructive resolution to these issues. In my opinion, at least for the near to medium term future, we are looking at increasing financial and social turbulence. The historical evidence suggests that the way in which policy makers will focus their efforts will be to try to inflate their way out of extreme over indebtedness by creating more and more money. Ultimately this will probably not work, and if I were to have to speculate, I don’t think it out of the question that within three years there will at least be serious discussions among global policy makers about the creation of new currency regimes.
Since we are in uncharted territory on a global scale, this is a time a great uncertainty in which events could move more or less rapidly depending on what the precipitating factors are. For example, the effects of a major natural disaster, a terrorist act, or who knows what else, are impossible to determine in an already fragile global financial system.
In my opinion, and reflective of the strategy we are currently being guided by, the best defense will be diversification which is targeted toward addressing the realities of the geopolitical and economic environment for the foreseeable future. This doesn’t mean there won’t be some volatility, but the objective is to be better able to weather the storm, retain value, and take advantage of the opportunities that will arise in what appears to be an oncoming global financial crisis.
Tuesday, June 22, 2010
If Only One Investment Could Be Made
The following is a piece I contributed to the investment website Seeking Alpha:
http://seekingalpha.com/article/213381-just-one-etf-safe-haven-concerns-favor-gold-producers-inflation-or-not?source=email
One of the basic functions of money is as a store of value. If the viability of this function becomes impaired, it is important to consider where economic value will be best preserved, or even increased. When making investment decisions, the objective is, at a minimum, to preserve value, and if we choose wisely, to increase the real value of our net worth. Implicit in the idea of value is what preserves and increases our purchasing power Because of the privileged position the US dollar has held as the reserve currency of the world, the mystique of power and safety has become an assumed fact in the perception of most financial players. In my opinion, it would be an error of judgment to assume that the United States has been divinely exempted from the laws of economics, or that the US dollar has any value other than a faith based presumption of economic entitlement.
There is a growing awareness that a fundamental structural shift has occurred, or is in the process of occurring in the power arrangement of the global economy. Events of recent years should have served as a wakeup call that placing blind faith in institutions such as investment banks, banks, insurance companies and governments is likely to be hazardous to an investor’s financial health. One thing that should be abundantly clear is that financial imprudence at all levels of our society, and throughout the world, has became institutionalized into an acceptable form of conduct. Imprudent lending, and imprudent borrowing, has created a vicious destructive cycle of over-consumption and over-indebtedness. As with many extreme indulgences, when the party is over, we are left with a big hangover and a big cleanup job. Right now the United States in particular, and the world economy, in general, has one gigantic hangover, and a daunting clean up job.
With a trillion dollar plus budget deficit, the United States will need likely need to borrow over $70 billion per month from foreign sources in order to continue funding its operations. The question that must be asked now is: How willing and how able will these foreign funding sources be to continue loaning money to the United States to fund its budget deficit? Many of these countries are having a more difficult financial time themselves in the present financial turbulence. Many of these countries were, prior to this financial turbulence, considering reducing the amount of money being loaned to the United States. In addition, because of this financial crisis the credit worthiness of the United States has deteriorated, and there are alternative places where these countries can deploy their financial resources which may be more directly beneficial to themselves. The conclusion is inescapable that a potential funding crisis will be one of the major consequences of the current attempt to contain this financial crisis.
Governments of the world have made massive commitments toward maintaining financial and economic stability. On a global scale, trillion of dollars have been committed to financial and economic stabilization. Each time a government responds to a financial crisis in an industry, business, another sovereign county, or municipality, the financial hole gets deeper. Looking forward to what pending financial crises of global significance crises are likely to emerge, there is no shortage of candidates. On the front burner is the unfolding European financial meltdown. A prudent view would be to assume that as bad as it looks, it is likely to be much worse when one factors in the amplification effect of derivative positions likely held by systemically important institutions. On the back burners, waiting for their chance to emerge are the rapidly deteriorating conditions of the pension systems, the FDIC, as well as state and local municipalities.
The biggest player is the US Government itself. The trillion dollar plus budget deficit projected indefinitely into the future does not even take into consideration expensive contingencies, which seem to inevitably arise, such as natural and man-made disasters, wars, and other Black Swan events which will necessitate additional funding requirements. How will all the unfunded liabilities and current operating expenses be paid for? One might argue that incurring these expenses is necessary, but there are also consequences.
That there will be increasing insolvency, massive economic displacement, and economic restructuring is appearing to be more and more a given. We are at a global economic watershed point. A recent book, This Time Is Different, by two eminent economists, professors Carmen Reinhart and Kenneth Rogoff, is based upon a compilation and analysis of data looking at government’s financial behavior over the past 800 years. Among their conclusions is a pattern which emerges as a constant. Governments overspend, over borrow, and then default. The two basic methods of default are an outright refusal to pay their debts, or an implicit default. In an implicit default the intent is to debase the currency with the objective of repaying existing indebtedness with a lower value currency, in effect, an attempt to inflate away the real value of a currency.
Given the current operating deficits, as well as future liabilities, the United States is on a trajectory that is financial unsustainable. Considering the position of the US dollar as the reserve currency of the world, the question of default must be addressed by an investor who considers that somehow events occurring in the world matter to the investing results achieved. In my view, an outright default by the United States of its debt is a probability so small as to be insignificant. On the other hand, an implicit default, where the United States attempts to inflate its way out of its financial hole is extremely likely, especially when there is no limit as to how much money the government can create.
If we assume, for purposes of discussion, that this is the direction in which economic history will move, it becomes useful to consider some of the implications of this scenario for asset deployment purposes. While there is a great deal of discussion regarding the demise of the US dollar, it is often followed by consideration of other currencies as a safe harbor refuge. This may be a false sense of security. One of the reasons for the US dollar's problem is the lack of monetary discipline because of the fiat nature of the currency, the same problem exists with other currencies. There appears to be an inherent instability with a fiat monetary system. Consequently, in my opinion, it is a mistake to believe that other currencies might be anything other than a temporary refuge.
It is the consequences that follow which will provide both the hazards, as well as the long term opportunities from an investment and financial planning perspective. It is exactly here that both the risks and the opportunities reside. In my estimation, the outcome of these circumstances will result in escalating interest rates, which is another version of credit availability reduction, and a damper on economic growth. This would be an unacceptable outcome for our government whose interests are critically tied to economic growth. The policy response will be an attempt to create vast amounts of money in order to effectively devalue debt, and consequently the dollar. Current economic policy discussion focuses on a debate as to whether we are looking at a deflationary or inflationary future. In my opinion, while I harbor the view that we will experience a severe hyperinflationary and stagnant economic future, I consider this to be somewhat of a secondary consideration. A more primary consideration, which is, and will continue to shape investor behavior, will be the economic uncertainty and dislocation which arises, whether it is inflationary or deflationary. This economic instability is already creating a greater shift in the view of what is perceived as a more desirable asset class to act a as reserve of reservoir of economic value.
Considering assets which might best retain or increase in value, it is clear that current market behavior suggests there is growing recognition that investors have starting voting with their feet. One investment areas which has highlighted these opportunities is precious metals, in particular gold. The evidence derived from reports of shortages of gold coins to the increase in bullion reserves by central banks such as China, India, Russia, and Saudi Arabia, make a compelling case that we are not witnessing merely a speculative thrust at a trading position, but rather a sustainable shift in perception of an asset that will withstand the rigors of the economic storms we are facing.
Aside from owning gold directly, there are now opportunities with exchange traded funds such as GLD, to take positions that very much mimic the economic characteristics expected of a currency. In my analysis, this provides a compelling reason to expect the demand for gold to continue to increase. It follows that if one expects the demand for gold to increase, the value of those entities which hold reserves of gold, as well as the productive capacity to bring it to market, can be expected to be beneficiaries of these circumstances. It is from that perspective that if I had to choose only one investment, I would select GDX, an ETF of gold miners as my investment of choice.
What Could Go Wrong
One thing I have learned from over twenty years of investment decision making, and corroborated during the experiences of my younger years working in research laboratories, is that no matter how well thought out and rational a position is, it does not necessarily mean that is what is. As a consequence, it is important to examine and identify where the potential risks lie in our expectations. The year 2008 gives provides us with a great opportunity to examine what happened to gold during that time of extreme financial duress.
Deleveraging caused massive indiscriminate selling pressure. Institutions were forced to raise capital to meet their regulatory requirements. At the same time the credit markets froze up, making capital very difficult to acquire. This made the situation even worse. Hedge funds are investments for institutions and very wealthy individuals. They operate by borrowing huge amounts of money using their invested positions of stocks, bonds, and the more esoteric derivative investments as collateral. Some of these funds borrow 30-40 times the amount of actual dollars directly invested in them by their investors. The lenders who provide this money to the hedge funds have lending requirements which require the hedge funds to come up with more money if the value of their investments drops too much. During the financial turmoil, the decline of the investments in these hedge funds forced the hedge fund managers to start selling their investments whether they considered them good investments or not. This amplified the overall selling pressure and made a bad situation even worse. It did not matter whether an investment had merit or not, it was going down, and gold did likewise. It is certainly possible for this to occur again. It should also be noted that GDX seems to trade more like a stock than GLD, hence one might expect higher volatility. One of the only assets which did well in 2008 in comparison was US Treasury debt, due to the perception of safety.
If we fast forward to the emerging European crisis of 2010 and examine market conditions, we can see growing investor perception recognizing gold as a safe harbor. Additionally, the gut reaction of flocking to the US dollar as a safe harbor seems to be becoming somewhat more muted. In my view, I see this as a growing trend that will greatly benefit GDX over time. By the same token, does this suggest to me that it would be appropriate to bet the family farm on this position? Absolutely not! Even if an investor sees merit in my analysis, each individual investor needs to evaluate his own risk tolerance and circumstances to arrive at an appropriate allocation to GDX even if it is the only investment position they are taking.
http://seekingalpha.com/article/213381-just-one-etf-safe-haven-concerns-favor-gold-producers-inflation-or-not?source=email
One of the basic functions of money is as a store of value. If the viability of this function becomes impaired, it is important to consider where economic value will be best preserved, or even increased. When making investment decisions, the objective is, at a minimum, to preserve value, and if we choose wisely, to increase the real value of our net worth. Implicit in the idea of value is what preserves and increases our purchasing power Because of the privileged position the US dollar has held as the reserve currency of the world, the mystique of power and safety has become an assumed fact in the perception of most financial players. In my opinion, it would be an error of judgment to assume that the United States has been divinely exempted from the laws of economics, or that the US dollar has any value other than a faith based presumption of economic entitlement.
There is a growing awareness that a fundamental structural shift has occurred, or is in the process of occurring in the power arrangement of the global economy. Events of recent years should have served as a wakeup call that placing blind faith in institutions such as investment banks, banks, insurance companies and governments is likely to be hazardous to an investor’s financial health. One thing that should be abundantly clear is that financial imprudence at all levels of our society, and throughout the world, has became institutionalized into an acceptable form of conduct. Imprudent lending, and imprudent borrowing, has created a vicious destructive cycle of over-consumption and over-indebtedness. As with many extreme indulgences, when the party is over, we are left with a big hangover and a big cleanup job. Right now the United States in particular, and the world economy, in general, has one gigantic hangover, and a daunting clean up job.
With a trillion dollar plus budget deficit, the United States will need likely need to borrow over $70 billion per month from foreign sources in order to continue funding its operations. The question that must be asked now is: How willing and how able will these foreign funding sources be to continue loaning money to the United States to fund its budget deficit? Many of these countries are having a more difficult financial time themselves in the present financial turbulence. Many of these countries were, prior to this financial turbulence, considering reducing the amount of money being loaned to the United States. In addition, because of this financial crisis the credit worthiness of the United States has deteriorated, and there are alternative places where these countries can deploy their financial resources which may be more directly beneficial to themselves. The conclusion is inescapable that a potential funding crisis will be one of the major consequences of the current attempt to contain this financial crisis.
Governments of the world have made massive commitments toward maintaining financial and economic stability. On a global scale, trillion of dollars have been committed to financial and economic stabilization. Each time a government responds to a financial crisis in an industry, business, another sovereign county, or municipality, the financial hole gets deeper. Looking forward to what pending financial crises of global significance crises are likely to emerge, there is no shortage of candidates. On the front burner is the unfolding European financial meltdown. A prudent view would be to assume that as bad as it looks, it is likely to be much worse when one factors in the amplification effect of derivative positions likely held by systemically important institutions. On the back burners, waiting for their chance to emerge are the rapidly deteriorating conditions of the pension systems, the FDIC, as well as state and local municipalities.
The biggest player is the US Government itself. The trillion dollar plus budget deficit projected indefinitely into the future does not even take into consideration expensive contingencies, which seem to inevitably arise, such as natural and man-made disasters, wars, and other Black Swan events which will necessitate additional funding requirements. How will all the unfunded liabilities and current operating expenses be paid for? One might argue that incurring these expenses is necessary, but there are also consequences.
That there will be increasing insolvency, massive economic displacement, and economic restructuring is appearing to be more and more a given. We are at a global economic watershed point. A recent book, This Time Is Different, by two eminent economists, professors Carmen Reinhart and Kenneth Rogoff, is based upon a compilation and analysis of data looking at government’s financial behavior over the past 800 years. Among their conclusions is a pattern which emerges as a constant. Governments overspend, over borrow, and then default. The two basic methods of default are an outright refusal to pay their debts, or an implicit default. In an implicit default the intent is to debase the currency with the objective of repaying existing indebtedness with a lower value currency, in effect, an attempt to inflate away the real value of a currency.
Given the current operating deficits, as well as future liabilities, the United States is on a trajectory that is financial unsustainable. Considering the position of the US dollar as the reserve currency of the world, the question of default must be addressed by an investor who considers that somehow events occurring in the world matter to the investing results achieved. In my view, an outright default by the United States of its debt is a probability so small as to be insignificant. On the other hand, an implicit default, where the United States attempts to inflate its way out of its financial hole is extremely likely, especially when there is no limit as to how much money the government can create.
If we assume, for purposes of discussion, that this is the direction in which economic history will move, it becomes useful to consider some of the implications of this scenario for asset deployment purposes. While there is a great deal of discussion regarding the demise of the US dollar, it is often followed by consideration of other currencies as a safe harbor refuge. This may be a false sense of security. One of the reasons for the US dollar's problem is the lack of monetary discipline because of the fiat nature of the currency, the same problem exists with other currencies. There appears to be an inherent instability with a fiat monetary system. Consequently, in my opinion, it is a mistake to believe that other currencies might be anything other than a temporary refuge.
It is the consequences that follow which will provide both the hazards, as well as the long term opportunities from an investment and financial planning perspective. It is exactly here that both the risks and the opportunities reside. In my estimation, the outcome of these circumstances will result in escalating interest rates, which is another version of credit availability reduction, and a damper on economic growth. This would be an unacceptable outcome for our government whose interests are critically tied to economic growth. The policy response will be an attempt to create vast amounts of money in order to effectively devalue debt, and consequently the dollar. Current economic policy discussion focuses on a debate as to whether we are looking at a deflationary or inflationary future. In my opinion, while I harbor the view that we will experience a severe hyperinflationary and stagnant economic future, I consider this to be somewhat of a secondary consideration. A more primary consideration, which is, and will continue to shape investor behavior, will be the economic uncertainty and dislocation which arises, whether it is inflationary or deflationary. This economic instability is already creating a greater shift in the view of what is perceived as a more desirable asset class to act a as reserve of reservoir of economic value.
Considering assets which might best retain or increase in value, it is clear that current market behavior suggests there is growing recognition that investors have starting voting with their feet. One investment areas which has highlighted these opportunities is precious metals, in particular gold. The evidence derived from reports of shortages of gold coins to the increase in bullion reserves by central banks such as China, India, Russia, and Saudi Arabia, make a compelling case that we are not witnessing merely a speculative thrust at a trading position, but rather a sustainable shift in perception of an asset that will withstand the rigors of the economic storms we are facing.
Aside from owning gold directly, there are now opportunities with exchange traded funds such as GLD, to take positions that very much mimic the economic characteristics expected of a currency. In my analysis, this provides a compelling reason to expect the demand for gold to continue to increase. It follows that if one expects the demand for gold to increase, the value of those entities which hold reserves of gold, as well as the productive capacity to bring it to market, can be expected to be beneficiaries of these circumstances. It is from that perspective that if I had to choose only one investment, I would select GDX, an ETF of gold miners as my investment of choice.
What Could Go Wrong
One thing I have learned from over twenty years of investment decision making, and corroborated during the experiences of my younger years working in research laboratories, is that no matter how well thought out and rational a position is, it does not necessarily mean that is what is. As a consequence, it is important to examine and identify where the potential risks lie in our expectations. The year 2008 gives provides us with a great opportunity to examine what happened to gold during that time of extreme financial duress.
Deleveraging caused massive indiscriminate selling pressure. Institutions were forced to raise capital to meet their regulatory requirements. At the same time the credit markets froze up, making capital very difficult to acquire. This made the situation even worse. Hedge funds are investments for institutions and very wealthy individuals. They operate by borrowing huge amounts of money using their invested positions of stocks, bonds, and the more esoteric derivative investments as collateral. Some of these funds borrow 30-40 times the amount of actual dollars directly invested in them by their investors. The lenders who provide this money to the hedge funds have lending requirements which require the hedge funds to come up with more money if the value of their investments drops too much. During the financial turmoil, the decline of the investments in these hedge funds forced the hedge fund managers to start selling their investments whether they considered them good investments or not. This amplified the overall selling pressure and made a bad situation even worse. It did not matter whether an investment had merit or not, it was going down, and gold did likewise. It is certainly possible for this to occur again. It should also be noted that GDX seems to trade more like a stock than GLD, hence one might expect higher volatility. One of the only assets which did well in 2008 in comparison was US Treasury debt, due to the perception of safety.
If we fast forward to the emerging European crisis of 2010 and examine market conditions, we can see growing investor perception recognizing gold as a safe harbor. Additionally, the gut reaction of flocking to the US dollar as a safe harbor seems to be becoming somewhat more muted. In my view, I see this as a growing trend that will greatly benefit GDX over time. By the same token, does this suggest to me that it would be appropriate to bet the family farm on this position? Absolutely not! Even if an investor sees merit in my analysis, each individual investor needs to evaluate his own risk tolerance and circumstances to arrive at an appropriate allocation to GDX even if it is the only investment position they are taking.
Subscribe to:
Posts (Atom)
