It's Time to Own Tangibles

Source: Jeffrey Saut, Seeking Alpha  (10/16/07)

For more than five years we have opined that EVERY portfolio should have at least a 3% weighting in precious metals, or a mutual fund that plays to precious metals. Despite that mantra, the preponderance of accounts continue to shun gold, which has risen more than 200% over that timeframe...


Plainly the U.S. dollar, which continues to acts like a drunk trying to stand up, has sensed the upcoming economic raison d’etre is one of printing more dollars and attempting to inflate our way out of said predicament. Likewise gold, as well as other tangibles, have “risen” to the occasion.

Indeed, despite all of the talk about the strength in technology stocks, the strongest sectors last week were Energy (+2.53%) and Materials (+2.19%). For more than five years we have opined that EVERY portfolio should have at least a 3% weighting in precious metals, or a mutual fund that plays to precious metals. Despite that mantra, the preponderance of accounts continue to shun gold, which has risen more than 200% over that timeframe (or twice the rate of the DJIA)...

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