Today's Market
by Dr Invest

At this point, I hold 1/3rd of my portfolio in bond investments, TIP and BND. I am also holding 10% of my portfolio in gold held at IAU. These new positions place the total portfolio at a gain of 2.15%. Some of you may ask, "How did your portfolio move from 2.26% to 2.15%?" Well, it looks like the portfolio went down, but it really didn't. For example if we had invested $100 and it gained 2%, we would have a total portfolio of valued at $102. Now if we added a new investment of $100 to that original $102, we would now have a total portfolio valued at $202 of which $2 is our gain. In theory the $2 gain is only 1% of $200. So it looks like our gain went down in comparison to the total amount invested... it didn't!

In this case, IAU (gold) has risen 3/4% since my purchase of gold a week ago. The total amount of gains has inched forward in the portfolio over the past two weeks. For the present, we will wait for our positions to mature and look for an opportunity to add another 10% of the portfolio into gold.

WHERE ARE STOCKS GOING

Hmm...who knows? Faber expects a 20% fall in stocks in the near future. Near, would be in the next 4 to 6 months. Rogers also confirms that he expects stock prices to fall in the near future. The S&P today rose to an all-time high... and what were the economic fundamentals for this rise? Economists are expecting a weak U.S. labor market, Spain and Greece teeter on the brink of bankruptcy, the chinese economy continues a slide to economic slow down. None of these facts indicate market strength and in no way justify continued market growth.

We will look for stock buying opportunities at the end of October, but in any case, objectivity and caution should be used in the purchase of stocks at this time.

As always, the above information is for entertainment purposes only and not to be used as investment advice.