My bullishness in commodities has taken my current Asset Allocation model to 15% in Commodities today. This is the highest allocation I have ever had to commodities, and I feel pretty good about that. Buying low is what I do, and to all the bulls turned bears out there who think this chart looks like it’s time to start shorting commodities aggressively, I have to submit my favorite Monday Night Football segment one liner – “C’mon Man!”
The US$ is breaking down, and gold is breaking out. This is THE early “Re-Flation” signal associated with the most aggressive global rate cutting party in world history. Since everything “Chindia” that the bulls bought into at the June/July CRB Index highs can’t be forgotten. May I remind the newfound commodity bears of their own investment letters from only a year ago that stated, as if it were gospel, that “its global this time.” Basic commodities have a place in everyone’s portfolio, but only at a price.
Research Edge LLC