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Richard Russell continues:
“Below, the euro. When the euro advances, as it's been doing, its mirror competitor, the dollar, usually declines. When the dollar declines, gold usually rallies. But that's not happening now. As the dollar declines, gold declines with it. Patience ... I think matters will return to normal and gold will rally with the euro.
The number one question I'm receiving from subscribers and friends is this -- “Where should I put my money?” My constant answer is, “put it somewhere where you won't lose it.” I think one-third to one half of your assets in gold bullion coins and the rest in cash (money market funds or CDs) makes sense to me. Here are a few funds that I like -- PIMCO All Asset all Authority Fund (PAUDX), PIMCO Commodity Real Return Strategy Fund (PCRIX), PIMCO UNCONSTRAINED BOND FUND (PUBDX).
In a World Full of Risk, Why Are Investors So Calm?
By Roben Farzad
The economy and markets of 2012 sport nearly as many risk factors as a Cialis ad: Four years into full monetary tilt, does the Federal Reserve much know what it’s doing, and should we grow to expect QE6? Can a recessionary, politically scattershot Europe apply a cordon sanitaire around the still very real threat of contagion? What will arrest chronically high unemployment and food-stamp usage here at home? What of that beyond-cliché fiscal outcropping: Do you take your tax hit now, or pray that January turns out OK? All this uncertainty makes you want to snuggle up to the warmth of punitively yielding U.S. Treasuries.
And yet at least one measure is telling us that the overall mood of the market has never been so sanguine. I like to read “Perception,” an indispensable monthly analysis by Leuthold, the Minneapolis asset management and research shop. Of all the jagged, funky charts still getting spooled out in the aftermath of the financial crisis, this one keeps grabbing my attention.
How does this overwhelming calm jibe with the prevailing uncertainty of our times? “The so-called Bernanke put—or, more accurately, global central bank put—is suppressing most of the risk and fear gauges,” says Leuthold’s Chun Wang. “And just about all asset classes, risky or risk-free, have been bid up.” Wang finds that low-fear backdrops like this historically last much longer than high-fear ones, and that increasing signs that housing and China are on the mend only add to the general chill-out.”
Russell Comment -- I've said this before. If any trouble hits, Bernanke will invoke QE6 in a flash. Thus investors have bid up stocks, bonds and collectibles to outrageous heights without fear of taking major losses. The danger is that because of the so-called Bernanke put, many areas have now blown into bubbles. Once these bubbles start bursting, I don't think the Fed will be able to stem an all-around series of crashing markets.
One glaring example of a bubble is the current art market. Another is real estate in upper east side Manhattan, where Goldman's Lloyd Blankfein just spent $72 million to buy an upper East Side Manhattan apartment and an estate in Bridgehampton, NY.”
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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with Michael Pento, Egon von Greyerz, Gerald Celente, Andrew Maguire, Roberto Giorgi, James Turk and Rick Rule are available now. Also, be sure to listen to the other recent KWN interviews which included Nigel Farage, Chris Powell, Bill Fleckenstein, John Hathaway and Ben Davies by CLICKING HERE.
Eric King
Richard Russell - Put 33% to 50% Into Gold & Sidestep Bubbles
With the end of 2012 rapidly approaching, the Godfather of newsletter writers, Richard Russell, boldly told his subscribers they should put 33% to 50% of their money into physical gold. He also warned them to steer clear of the many bubbles that have formed. Here is what Russell had to say in a note to subscribers: “The smart talk now is that you should switch your bonds to equities on the thesis that stocks “should” move higher. I know that the major stock analysts believe that stocks should advance during the year 2013. On this thesis I'm not convinced. It bothers me when the great majority of analysts agree as to the future direction of the stock market. The majority of analysts are seldom correct.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
December 27, 2012
