Positioning the Portfolio - Important Changes

This is my first blog, so I will bring you up to date. I will be posting a blog every work day going forward.

In addition to physical Gold I have been recommending for a long time, I purchased Gold (GLD) approximately a month ago. I shorted 20 year Treasuries (TBT) a few weeks ago, which may have been a little early in hindsight now that Europe is falling apart. There has been a flight to quality into Gold and Treasuries (if you can call Treasuries quality).

We have made a lot of money so far on Gold and have a long way to go I believe. Even though we are down on the Treasury short, I still think we will make money on it due to the fact of the US montetary policy of the non-stop printing money, and people are now starting to compare our debt levels and problems with Europe.

Early this week, I sold all overseas stock/equity investments, and am holding a lot of cash (money market) and bonds. Today, early this morning I shorted the EURO and the European stock markets. I think Europe has a long way to go and difficult problems. In fact, it is possible they break apart.

The European short will act as a hedge for the small portion of US domestic equity I own, and I think we will profit handsomely from it. In fact, it is possible that the US "decouples" from the overseas markets and recovers and goes up while the worldwide markets go down, especially Europe.

My timing doesn't have to be perfect as long as most of my macroeconomic indications are correct, and we (Dan Cofall and myself) have been extremely accurate over the past few years. In short (no pun intended), I currently own some US equity, some bonds, a lot of cash, and am short the Euro, European equity, and US Treasuries.

You can listen to our investment ideas on 1190 A.M. in DFW form 4-6 p.m. M-F on the WallStreetShuffle or you can listen to us streaming by going to our website the www.thewallstreetshuffle.com. In addition, I will be posting a daily "Chart of the Day" on our website.

Hope you find this entertaining, and better yet, I hope you learn something and can make some money from it, and more importantly, avoid losing it.

Have a good weekend, Dan Stewart CFA