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This is getting exciting …
Today, I’m going to take the first step towards helping you build the optimum growth portfolio for 2010!
First, though, let’s take a look at some of the insights and ideas readers posted on my blog in response to yesterday’s question of the day:
What portion of your portfolio do you have invested in commodities and natural resources?
Which commodities do you prefer?
And what instruments do you use — commodity ETFs, commodity stocks, futures, other?
With very few exceptions, most of our readers seem to be bullish on commodities for 2010. The primary area of disagreement is how much of a growth portfolio should be allocated to resource investments …
Gary F. is one of the more cautious commodities investors to weigh in: “Approximately 20% of my self-managed portfolio is in commodities,” he writes. “Natural gas and distribution infrastructure ETFs and MLPs are a significant part of these holdings.”
Rob seems to be twice as bullish on commodities as Gary: “I currently have approx. 40% of my net worth in commodities.”
And Walt P. has invested nearly ALL of his money in just one sector of the commodity market — energy. His words: “I spend probably 80% of my available investment capital in oil & gas.”
Could this really be
the optimum growth portfolio
for 2010?
Over the past week or so, we’ve seen how our readers are structuring their portfolios across all the major asset classes. On a scale from one to ten (ten being the most bullish), I’d guess our readers give U.S. stocks a “two,” while ranking foreign stocks — largely in the BRIC nations — a solid “eight.”
They give fixed-income investments about a “four” and currencies rate a “seven.” Precious metals rank a solid “nine” while commodity investments get an “eight.”
Judging just from this response, you might calculate that, according to our readers, the optimum portfolio for 2010 might look something like this:
U.S. Stocks: 5%
Fixed Income: 11%
Currencies: 18%
Commodities: 21%
Foreign Stocks: 21%
Precious Metals: 24%
But please — do NOT rush out and restructure your portfolio this way!
Because by doing this exercise, we also discovered logical and logistic flaws in this reasoning — some of which could prove extremely costly …
For one, our readers freely admit that many of their portfolio-building decisions are based on “gut feel” and not on a consistent methodology for spotting asset classes with the greatest profit potential and least risk.
We also discovered that, as I count it, about half of our readers have invested most or nearly all of their money in only one or two asset classes — notably precious metals, commodities or foreign stocks, for instance.
But that leaves them extremely vulnerable to sharp declines in those areas, even if the declines are temporary.
And yesterday, we uncovered another danger when one reader pointed out that he had invested a small percentage of his money in gold five years ago — but because gold has skyrocketed in price, it now represents a much larger percentage of his portfolio, exposing him to more risk than he bargained for.
After all: How DO you know when to take your profits in one asset class — and then redeploy that money in other areas to maintain a rational allocation of your resources given the current environment?
Or as William put it, “This is the smartest investment advice of anything I’ve heard in 30 years. We should never lose sight of … being too heavy in one area due to past performance or bias.”
Which brings me to today’s question-of-the-day:
If you could start from scratch to build the ultimate growth portfolio for 2010 …
If your goal was to rationally diversify your capital over the most promising asset classes for the year ahead …
Where would you begin? What would you need? How would you proceed?
NOW, we’re getting there: This is really where the rubber meets the road!
Just click here and use the “comments” area to share your thoughts with us. And as always, I’ll add my own thoughts and answer as many questions as I can.
Best wishes,
Larry
Related Posts
- How would YOU build the optimal portfolio? (01/12/10)
- 2010: Big Currency Profits Ahead? (02/01/10)
- Commodity windfalls ahead … or not? (02/02/10)
- My big question for today: What do you do for income? (01/28/10)
- Foreign stock bonanza ahead … or not? (01/27/10)
{ 55 comments… read them below or add one }
Hi Larry,
Regarding you informative ” Another Peek Into The Future” article; the 40 Month cycle peak date seems to be Oct. 2010 based on the x-axis dates. The Chart showing the 24/40 mnth Composite Cycle 24-40 seems to peak in July 2010. The DI seems to bottom early May 2012. Please verify or do I just need a new prescription for my glasses.
Thank you , Fred
Larry Edelson Reply:
March 9th, 2010 at 7:45 am
It’s just the way the charts come out when they are published, some distortion does occur. The dates I mention in the article are the correct ones to go by.
Larry,
I noticed that mayonnaise several months ago was about $5.00. Checking it out several weeks
ago the price reduced to $3.43. Of course, it was 10 ounces lighter.
Best,
Jean
Optimum Portfolio for 20010: I would alot 20% Cash, 25% income producing real estate (actual property) 5% Gold Bullion, 5% Silver Bullion, 5% Gold Mining Stocks, 5% Silver Mining Stocks, 5% REITS, 10% Energy stocks, 5% Technology stocks and 20% dividend producing Stocks. This I would consider a safe Optimum Portfolio.
A REVISION TO OPTMUM PORTFOLIO for 2010: A investor needs good up to market knowledge, therefore a person needs to alot 1-2% of their cash to Newsletters that have a proven track record of Reco’s, Trends, etc. This would change My Optmum Portfolio for 2010, to…. 18-19% cash 25% income producing property, 5% Gold Bullion, 5% Silver Bullion, 5% Gold Mining Stocks, 5% Silver Mining Stocks, 5% REITS, 10% Energy Stocks, 5% Technology Stocks, and 20% Dividend Producing Stocks and of course 1-2% market newsletter knowledge.
Larry,
Thanks for your optimum growth portfolio and it would be nice to restructure my investments. I’m extremely light compared to your commodities,precious metals and energy numbers. As an architect who offices in a building that is heavy with energy companies, the buzz is that oil and gas will go up and down but climb long term.
As a couch potato investor who has been fried extra crispy, what do you think would be the best way to blend in some energy and hold it?
Thanks again, great stuff!
Ed
GOOD MORNING LARRY,
I ENJOY READING YOUR NEWS LETTERS AND UPDATES ON THE MARKET. THEY ARE VERY INFORMATIVE AND HELPFUL. I STARTED INVESTING OCT. 08. I HAD ONLY A SMALL AMOUNT OF CAPTIAL THAT I COULD AFFORD TO LOOSE, SO DECIDED TO INVEST IN THE SUBPENNY MARKET. MY REASON FOR DOING SO WAS THAT I COULD PURCHASE A GREATER NUMBER OF STOCKS, IN LARGER NUMBER OF SHARES PER STOCK AT MIN. COST. MY LOGIC WAS IF ONE OR TWO WENT SOUTH I COULD AFFORD THE LOSS. BUT, IF ONE OR TWO TOOK OFF I COULD REALLY CLEAN UP. MUCH TO MY SUPRISE I HAVE BEEN ABLE TO AVERAGE ABOUT $1000 PRE MO IN GAINS, WHICH I THEN REINVEST INTO MORE STOCKS. I NOW HAVE OVER 70 CO’S I AM INVESTED IN. I HAVE ALSO BEEN ABLE TO MOVE INTO SOME OF THE MORE EXPENSIVE CO’S LIKE, CLOROX, KRAFT, PROCTOR&GAMBLE, PIEDMONT NAT. GAS, GENERAL DYNAMICS AND WASTE MANAGENMENT. I USE EODDATA AS A RESEARCH TOOL TO FIND SUBPENNY STOCKS LISTED ON THE OTC BULLETIN BOARD. I THEN LOOK FOR CO’S THAT HAVE BEEN IN BUSINESS FOR AT LEAST THREE YEARS, THAT HAVE TRADED BETWEEN .30 CENTS TO $5.00 IN THEIR PAST, HAVE A GOOD PRODUCT IN DEVELOPMENT OR ARE ABOUT TO MERGE OR SPLIT AND ARE SELLING FOR .0001 TO .0009 CENTS.
AS FAR AS MY PORTFOLIO IS CONCERNED I DID NOT INTENTIONALLY SET OUT TO COVER A WIDE RANGE OF INDUSTRIES OR COUNTRIES, IT JUST WORKED OUT THAT WAY.
LOOKING AHEAD TO THE FUTURE OF THE MARKET AS A WHOLE, I SEE TWO POSSIBILITIES, THAT IT WILL EVENTUALLY CORRECT IT SELF AND GO UP, OR WE FACE A TOTAL WORLD WIDE COLLAPSE. IF THE FORMER, THEN WE WILL ALL PROFIT TO SOME DEGREE, IF THE LATTER THEN IT DOES NOT MATTER IF YOU HAVE A HUNDRED DOLLARS INVESTED OR A HUNDRED THOUSAND IT WILL ALL BE ZERO. I FEEL I HAVE NOTHING TO REALLY LOSE AT THIS POINT IN WORLD HISTORY. HOPEFULLY WE CAN ALL TAKE OUT ENOUGH PROFIT AND PUT IT IN A GUARANTEED ANNUITY BEFORE IT ALL GOES TO HELL,.
I THANK YOU FOR YOUR TIME AND CONCERN IN THIS MATTER.
SINCERELY,
JERRY
Larry,
I have never heard you mention indexed annuities when talking of fixed investments, Why? They have principle guarantees and the opportunity of of good growth to keep up with inflation, not to mention the stability of the insurance industry as compared to the stock market, banking and real estate. Thanks, Glen Sypher
Investors in love with the plurality of bank notes while ignoring the purchasing power thereof is the certain doom to which world central banking has brought the investment world. Investors impressed with the plurality of bank notes, mistaken for profit, is the same mistake hobbyists enamored of Tesla turbines make when they confuse extremly high revolutions per minute with torque. In monetary terms, sound purchasing power impresses investors with true profits just as the 100% torque of steam engines at rest but connected to a boiler full of steam impress locomotive engineers when they open their throttles to pull a mile long train. If inflation continues to erode the purchasing power of bank notes, where is the profit in a successful trade? How can gold be a hedge against inflation? When gold is sold, only bank notes can legally be exchanged for it. Ultimately in absence of alternative / derivitive trades, Investors who realize this will ultimately choose consumable commodities like crude oil, agriculturals, hospitals, insurance companies, funeral homes, service businesses and the like because these are necessary to civil life and survival. The reason these are preferable to metals, uranium, lumber, concrete, and automobiles is the simple fact the street economy is forced to keep parity with the eroding purchasing power of bank notes. When one sells these commodities for bank notes, no matter how inflated, the purchasing power of bank notes becomes, they are at least at parity with inflation. Other commodities take too long to move through the gestational cycle from production to consumption. If anything will restore the markets as we once knew them, it will be the slowing or cecessation of inflation. The only people gaining from inflation are “first borrowers”. This is a well known and understood principle of fiat bank note banking. Consumable commodities are the only profitable commodities for the foreseeable future. While agriculturals are not finite, there are enough price supports and other market controls in place that they remain well regulated for holders of these commodities to profit handsomly. If I could live another 50 years, the two greatest areas of quick wealth will be shorting global central banking and harvesting ice bergs to bring potable water to the arid parts of our world. Shorting cantral banking will come as tribute slaves are increasingly failing under pressure to service world wide national debt while maintaining unimaginable governmental deficet spending. The harvesting of ice bergs sounds as nuts today as Fulton’s steam boat once sounded, yet you younger investors will make a killing if you keep this in the back of your brain. This will represent the tightest market timing imaginable. An ice berg renders the purest water on earth. Melted with nuclear reactor heat, ice bergs will represent more wealth than petroleum represents in the global economy today.
John Mahler
Larry, I believe the question is too broad. It all depends how old you are and your income. If you are young and have a good secure income then I would reccomend more risk. If you are my age (55) then you may want to look at more investments like midcaps, or natural gas mlp’s with 7% - 8% yield.
Gold, Silver and precious metal stocks = 17% Energy mutual funds = 10% The rest divided up between Gnma fund, Primecap US Large cap stock, and International stock fund. I am waiting for a downturn to purchase more gold.
I have lost 2/3 of my investments this past year, I have tried options, stocks, etf’s
I kinow I do not have the patients to let my investments grow. I am 78 years old. I need a plan and need to stay with it. I have Tin-steel- bascic materials-china-technology-coal-agribusiness-indonesia-india-and 25% in gold and silver coins. would appreciate any help forthcoming
I live in the Upstate of SC for the last 21 years. I grew up in the Netherlands and I remember vividly that my father had a large garden, which saved us from starvation during WWII. 4-5 years ago I started a garden here because I foresee a similar situation developing, when the USA goes bankrupt, after the USD collapses, following the crazy policies of the present government of trying to spend themselves out of a recession/depression.
The soil in the South is like ground brick and it takes a number of years of organic fertilization to get a good harvest. I use animal compost (rabit manure) and leave-mulch. So you better start now. I have 3000ft.sq and I can double it. It is hard work, but just as good as visiting a gym. ( I do that too).
My portfolio at the moment is as follows:
Gold Bullion 0%. I intend to buy 5-10% when gold retracts to $950.
ETF GLD 24% I intend to keep this as a Core investment
Gold Mining 7% I follow RWR, Larry and Casey. I intend to increase percentage.
Others 4% I follow RWR recos. I intend to hold some ETF-UUP for a short while because of PIIGS in Europe. Europeans flee again into US$ until they realize that US$ is a bad solution. Reason for RWR stoploss of UDN recently.
Cash in MM 65% I intend to invest 40% or more gradually, No point in keeping a fiat currency which will loose is PP (purchasing power) because of Helicopter Ben policies.
Total 100%
I look forward to seeing the RWR optimum portfolio.
Thanks Larry for doing all this.
Greta
Put this commodity at the top of your list . . lithium.
A large amount of lithium is required and a certain amount of palladium is required in a hybrid car.
Palladium is the best catalyst.
used to ask my dad “can I get you anything?”
A: Yes, some old gold, . . . cheap.
leave em laughing
on the square.
One can make a trip to Switzerland and get SGOL shares converted into physical gold on the spot.
forgot to mention CANADA
The biggest challenge I have to overcome, is determining to what extent the US debt and foreign debt is going to impact each investment vehicle, not only in US markets but world-wide markets.
The political irrationality frightens me.
Just to sooth my nerves, I would love to just be able to cash in and preserve the capital. But, my needs are to keep the earnings flowing.
It all seems a lose, lose proposition.
I agree with your proposed portions and have directed my funds slowly into foreign stocks, commodities and metals but I’m still heavy in cash and fixed assets as I still believe the general US market will drop 10-15% in first two quarters of 2010. At this I will be reinvesting 25% in US market but only in quality.
I have already commenced moving more investments into foreign stocks, primary developing countries, not Europe, commodities and metals but balance of funds, roughly 50%, is still in cash and fixed income. I still firmly believe the market will drop 10-15% in first half of 2010. After this I will put 70% of this reserve in US stocks, quality companies, and balance in foreign stocks.
I’ve just checked. I’m 39% Gold/Silver and 9% Global Resources (Oil/Gas). Some of these are in IRAs. I’m collecting Soc Sec, but I haven’t retired. I’m not sure what’s ideal for 2010. I haven’t had very good success with options. I hit one good one, but several were complete losses. Seeing my lack of success with these I’d better stop this type of investment.
Our portfolio isn’t structured for growth. Growth in the coming year will be had only at the cost of tolerating very high risk of a general market collapse in both stocks and bonds, and/or the manipulation of individual small cap stock values by insider trading and speculation. We’re looking for safety, not growth.
Our investments aren’t earning much now and that’s just fine with us, thank you. 70% of our assets are in short-term Federal and high quality Corporate bond funds and money market funds. 30% are in mid-to-large cap equities like Vanguard Wellington If we see likelihood of an anticipated interest rate hike by the Fed, we’ll be out of all equity markets and into cash and laddered / FDIC insured bank CDs. We might lose a few percent in inflation this way, but in the early stages of inflation it’s unlikely we’ll see the 55% loss in value that the S&P 500 experienced between October 2008 and March 2009.
Larry I can Not answer this Q as I don’t know much nor do i have much to invest! I am looking for advice on how and what to do and buy!
WELL THIS IS WHERE i AM AT FOR BETTER OR WORSE.
1 GOLD AND SILVER STOCKS A MIX OF MID TIER, AND EXPLORATION
2 ENERGY STOCK ALL CAN. INCOME TRUSTS OIL& GAS MIX
3 AGRICULTURE ETF MOO AND CRESY
4GOLD/SILVER BULLION ( CEF.A )
5 ALTERNATIVE ENERGY URANIUM, GEO THERMAL WIND
“Turbo Caps” have been cloaked in secrecy. Yet they are one of the most powerful ways to build wealth. Wall Street institutions such as Goldman Sachs, Merrill Lynch and Lehman Brothers have used them for years to make themselves and their clients super-rich.
In fact, these big firms have literally turned individual investors away at the door… keeping the big “Turbo Cap” gains for themselves. And it’s no wonder. The “Turbo Cap” market is an investment realm like nothing you have ever seen or experienced. “Turbo Caps” can generate staggering returns of 3,400%… 5,100%… 7,100%… 12,300%… even 13,900% in a single day.
Until a recent SEC rule change, the average investor couldn’t touch “Turbo Caps.” But now the door is wide open. You can use them and make the same kind of returns the Wall Street fat cats have done for years.
Larry - what do you think of “Turbo Caps”?
I sip my afternoon coffee with the group’s oracle.
He whispers.. commodities: e.g. mining.
So from now on we’ll keep apace with your daily recommndations till we get involved in your trading ventures.
We’re getting into the groove slowly but surely.
To Enter or Not to Enter the RWR January 2010 recos now ???
Dear Mr. Edelson,
As a subscriber to Winfall Resource Trader (i am a bit red there now, but I understand it is because I’ve positioned myself for the next push), I also started reading RWR. December and Jan editions call for entering Chinese recommendations. Today’s voice video calls for “chop city” environment.
Q: wait before following Jan’s recos ?
Respectfully yours,
Claude Ph Medard
I’d put all my investment money in canvas manufacturers and tent makers Larry. When Obama and Bernanke are finished with us, tents will be the only housing left for anyone but Congressmen and big bankers.
My bonds include short term investment grade and gnma 35%, a Vanguard balanced fund 25%, Gold etf,and gold stocks 20%, electric utilties 10%, master Limited Partnership 5%, agribusiness 5% I believe this year 2010 is a year to preserve your money and not risk losing. So I have adjusted to this mixture for now.
My allocation=10% cash, US income stks & bonds,=15%, Intln income stks & bonds=15%, Sector Investing (what’s the trend?) (what is the next new investment area?) =10%, US Stks=10%, Intl Stks=15%, Prec Metals=15% and Commodities=10% = 100%. Larry, how does this look???
P. Watson
I WOULD DO THE SAMETHING
what do you think of anuitys
art
Dear Larry,
You say this is not the time to buy stocks. If you are in, is it the time to sell?
I think agricultural real estate is the best long term place to invest. Buy a farm if you can afford one. Buy stock in a company that buys ag properties if you can’t.
A growing world population, diminishing availability of overseas irrigation and culinary water, and America’s current real estate prices all make farm land an excellent long term investment.
I have 50% in diversified T. Rowe Price mutual funds mostly emerging markets, China and Latin America. An additional 20% in commodities (natural gas) and the balance in diversified U.S. Stocks. I’m basically a ‘buy good issues and hang on’ investor - but will if conditions warrant I’ll also ‘day trade’ inexpensive issues for small gains.
LARRY,
I HAVE NO IDEA WHERE TO “START” TO ANSWER YOUR QUESTION. THAT IS WHY I AM COMPLETELY COUNTING ON YOU AND THE WEISS RESEARCH TEAMS.
JOHN
Larry
I would focus a rebuild of my portfolio with a bias toward commodities dues to the long term weaknesses I see and you confirm in the dollar and the contining growth and strengthening blance sheets in emerging market economies. The reckless spending in DC and the growing media attention and resulting anti-debt sentiment in the US to the exploding US debt coupled with the real potential for a slow economic recovery and job growth says telss mee the dollar has problems while commodity demand will continue to grow globally.
Consquently, I would position into a base of gold and silver, with 5-10% physical and 5-10% in gold/silver stocks and ETF’s for a toal of ~20% of the portfolio. I would then move into energy via trusts and MLP’s for growth and dividends while also using ETF’s for cyclical plays and hedges. I would next move into international emerging market stocks and ETF’s such as Brazil, Korea, China and India. I also would try to position these investments (~10-20% of the total portfolio) in there currencies as opposed to the dollar. I would then use inverse ETF’s across the board for a reasonable hedge but collectively no more than 50% of the total portfolio would be in commodities and emerging international stocks. I would then keep ~10% in high yield Corporate bonds (foreign and domestic) and the rest in cash (treasuries, money markets, etc.). In general I would try to keep 40-50% of the portfolio in cash.
I am a bid leary about bonds in debt laden countries so I would seek expert advice here.
Let me know what you think.
Roger
Hi Larry, I just watched your video…
I bought 200 UUP,200 SDS,500 GLL this morning before the market opened
and they are doing quite well so for today!!! I expect the dollar will continue up
for most of the year and I expect Gold to fall much further by the end of this
year and the DOW should be somewhere in the 8000 range or lower by years end !!!
Of course there will some corrections along the way and I intend to take advantage
of those also !!!
Good Luck and God Bless
Here are my portfolio percentages. If I take my total portfolio 78% is in fixed incomes for which I have no control. Some is annunities, some private placements. But if I analyze that portion over which I have control, then the answers to your questions are as follows: Cash 16%; us stocks 0%;foreign stocks (ETFs)19%,(stocks themselves)15%;currencies(Brazil,Australia,mostly)19%;Precious metals(gold Etfs)20%.other 11%.
My Ideal 2010 Portfolio
10%=Vanguard Precious Metals Fund(nat’l resources exposure);
15%=Vanguard Energy(Oil/Gas exposure);
20%=Select Gold Stocks(AUY,TGB,GUYFF,PEZFF,IAG);
20%=Select Food Stocks (HNZ,UL,Kraft, ConAgra);
20%=Select Utilities(Duke,Etc);
10%=Select USA w/ Foreign Presense(Catipillar,Coke, Deere, Etc);
5%=Vanguard Prime MMkt
Strong Dividend Producing Stocks(4%+) in Narrowly Selected Industries (Oil/Gas/Food/Utilities are
REAL important in this enviornment…So are Up and coming Gold Juniors like FRG, PEZFF, GUYFF, and TGB…
Commerical Real Estate, Ginnie/Freddy Mac, Currency Plays, Bonds, T-Notes, CDs, ARE ALL TRAPS…Even Annunties..(the cosey..comfortable cage…)
I am starting to looking at buying pre 1964 90% silver dimes.
The recent activity in European PIIGS presents a wonderful opportunity for this.
Have heavy position in Gold coins, gold ETF, gold mining stocks and silver ETF. Fiat money inflation is inevitable. Also have TIPS, Emerging market fund and Treasury MMF. Also a few dividend paying stocks. Don’t misunderstand it’s still not a lot of money. Suggest advisable to stock up on storable food cause we could face a societal collapse of some sort. An EMP is possible for example.
Larry,
In these circumstances, I won’t invest in anything that is not a necessity for the daily lives of most people.
Dear Larry and fellow bloggers,
Thank you all for sharing your financial info and ideas and especially Larry for all do and for setting up this learning forum. I don’t need to live on the investments (I hope!) I am playing with here. That said, with the “play money” (not very much) I have done fairly well in recent years riding the gold and silver markets in the form of etfs and mining stocks in their ups and downs. My latest idea for 2010 and beyond is to add some other commodities like oil, natural gas, and water from the RWR, so that along with the metal investments, would total about 70%, with 50% in metals. The rest of my idea would be to have the remaining 30% or so be in market shorts like EDV (VANGARD EXTENDED DURATION TREASURIES INDEX ETF, DOD (SHORT DOW 30 PROSHARES, and SH (SHORT S@P 500 PROSHARES which go up as the other 70% tends to go down. For example, today, SH went up 3.07%, EDV went up 2.38%, and DOG went up 2.51%, while GDX went down 5.47%, SLW went down 6.93%. So you may gather, my new “Mad Plan” is to ride both, in their inverse ups and downs, buying and selling both at the best guesses of Stephen Leeb and Larry and the Weiss Group. Another big plus of this idea is that when the market plunges suddenly, these shorts skyrocket and then can be sold and spent on cheap commodities. It has a kind of built in insurance policy. Finally, short of a govt takeover of the metals sector - which is not beyond the realm of possibility- the sky seems to be the limit in long term in this sector with world shortages increasing and fiat money drowning in less and less value. So aside from the govt, risk , and if i don’t need the money instantly, what’s the risk from being so undiversified? If I’m missing something here, seriously, please someone tell me. I’m all ears!
I am relatively new at this and this is an idea I, myself, came up with. There may be some factors I’ve not considered. I welcome any and all feedback about it!
Richard
After reading post above about dimes. . . as a kid (born in 54) would cross the street to the Krispy Krust local bakery here in greater new orleans (how bout dem Saints. . . “an enterprise” ??as they were referred to!
back to the bakery. . . . buy vamilla creme doughnut or two and sort through the change to keep the mercury head dimes all of the silver dimes and the Indian head nickels.
In the movie Putney Swope . . . .
and the proposed advertising campaign that has Colombus meeting Indians . . . .
In exchange for your land I’ll give you fifty guineas. . . .
(flashing to comedian Bill Hicks on wanting to do away with marketers. . . he died at the age of 32) . . . “Mr. Victrola Cola: I got this great window cleaner. Cleans good and doesn’t streak. Smells bad, though. Cleans good, but smells bad.
Putney Swope: As a window cleaner, forget it. Put soybeans in it and market it as a soft drink in the ghetto. We’ll put a picture of a rhythm and blues singer on the front and call it Victrola Cola.”
Gimme two
I’m waiting for the day when all you ‘gold bugs’ want to sell…then I go short. You
see all of you are buying the gold. When it gets to $5000 (Larry’s)….who is going
to buy your gold then? Oh!…..yeah, I forgot ‘the greater fool theory’……I’ll wait….
ciao,
Tony
I would honestly start with technical trading in and out of stocks in the 0.01 thru $5.00 range to build capital with about 5K of a 20K portfolio. With the other 15K, 5 goes into cash to sit for special circumstances in setups you find along the way that happen regularly but only once a year or maybe 6 mnths. 5K into energy MLP’s, which ever ones have been increasing in valur and size of divies. This could easily get spread too thin among so many these days, so choosing here for the long term is important. Also because these are holdings you dont ever want to cash in or sell rather. Maybe with the drop in silver and gold the last couple of days I would see where it goes in the next week and buy physical stuff with 3K (2.5 Au .5 Ag) and the other 2K look at option market for plays there.
I think you should probably lower the foreign currency and put more in us stocks tech mostly after april. Some people will have large tax paymets for all their gains last year and will cash out and the house credit will be over. Otherwise i liked your suggestions.
To Bill Powers, Please cash out and do a little research on dividend stocks. something like NZT newzealand communications is 7-9 % dividend. WM -waste management garbage is good, is 5% or better. Even the build America Bonds yeild 6.4 %, You need a steady flow of income at 78, who cares if the principal fluctuates a little as long as you can sell instantly if you must byt you have money coming in. BP has a 6% dividend DEO has a 7% dividend. There is VE water and garbage 6% dividend. Check it out. DEO and VE are european BP is british. Go Daddy!!!!!@!!!!!!!
In this environment, it looks like this would be the portfolio I would be comfortable with, aimed at
1. Purchasing power preservation, 2. some income generation and 3. some capital gains:
Cash 50% (switch currencies as per trends, in my case CDN $ to US$ and vice versa)
Bonds or medium term CD’s 20% (AAA corporate, Canadian or US, CDs ony Canadian GICs)
Gold / Silver ETF and gold coins 10% (sell ETFs on cycle peaks then buy back, hold the coins)
Gold, silver miners stocks 5% ( Write calls on overbought run ups, sell and replace as per charts)
Energy stocks and ETFs 5% (same as above)
Dividend generating stocks or equity income mutual funds 5% (Leave those alone once the performers are identified)
Trading funds at risk 5% (use for “long shot” bets such as call options purchases on promising prospects, puts purchases on indexes, DOGs, TBTs, etc.
Regards, Anthony
“In the nineteen-forties, it was Victor Mature and Judy Canova. In the fifties, Christine Jorgensen and James Dean. In the sixties, Smith and Wesson. ” Putney Swope ‘69.
Larry - Hi - Something stirs in SYDNEY Town - Could be BIG
In case you missed it , see the MELBOURNE Herald SUN newspaper Sat 6 Feb 2010 ( Aust Time )
Page 79 - ” Markets in a spin ” by George Lekakis and Fleur Leyden ( or contact George and Fleur )
( Herald Sun News Desk 61392921226 )
The article details a meeting for two days , in Sydney , of representatives of 24 central banks and monetary authorities
including the US Fed Res and European Central Bank , starting Sunday 7 Feb ( tomorrow ) at an undisclosed destination
Organised , we are told , by the Bank for International Settlements ( BIS ) last year. ( Timing was perfect )
There is a mention of extreme security and the whole deal is shrouded in secrecy
Thought you may like to investigate this little deal , Ben Bernanke is rumoured to attend and our Treasurer gets
to address the delegates at a dinner on Monday night when it’s all done and dusted..
If I can assist in any way please advise
comm. Larryodity trading makes sense to me in thiw unpredictable world.Ive tried and lost on more conventional avenues. Larry, I value highly your thursday comments. thank you.
I would like to be invested in commodities futures and options What steps must i take to do that?
!5% Gold/siver
5 speculative metals ming
5 rare earths
5 uranium
5 water
5 wind power
5 utilities
10 Oil
25 int’l stocks
10 shorting the $
10 flexible
Larry I would begin with food processers.