Long-term our assumptions have not changed, we believe precious metals as well as stocks will rise with obviously intermediate and yearly cycle lows along the way. In fact, all commodities should do well in an inflationary environment. What investors should really be looking at at present is the US dollar. The greenback really sold off in a big way over the past few weeks and probably has more to come until we register an intermediate cycle low. The dollar now as it stands has not been this oversold on a weekly oversold since early 2018.
In our trading exploits, it is vital to consistently trade with the underlying trend. Suffice it to say, dips in stocks should be bought as well as precious metals.
Another pillar of our portfolio management is how we trade volatility. This past week, we took profits on GSX Techedu (NYSE:GSX) as volatility came in somewhat. The August $50 puts for example contracted from $1.65 per contract a few weeks ago to around $0.50 at present.
We see good value in some steel stocks as well as insurance companies at present if one invests in these for the long term. Also one can trade around these types of positions as long as the shares of the firm are liquid enough to get good fills.
As always, Remember The Motto – No Lose – Never Let Them Get Into Your Pockets
To The Top