As we come into the week of Dhanteras and Diwali, and the celebrations that go with that, let us talk about some of the financial decisions we may consider at this time. I heard Swarup Mohanty at Mirae Asset Management say this a few weeks ago: "Dhanteras is the time for our Annual SIP into Gold." It's true and I'd never thought of it that way.
Buying Gold has been a traditional investment for many. But financial markets have developed to the point that we look at buying Gold as a financial decision - complete with its risks, rewards, and top-down analysis.
(I'm not sure if Mr. Mohanty came up with that expression or if I should have credited someone else. I heard it from him. Please forgive any mistakes in this.)
There was a lot of movement across asset classes over the last week, but more importantly, the market gave us some key inflection points to trade against.
In this post, we're going to look at Precious Metals and review how we should be approaching them.
Gold made new all-time highs this summer. That was pretty cool. Hadn't seen that in almost a decade.
Some people always like buying gold. They joined some secret society once where they convinced themselves it was part of a "diversified portfolio". I don't know what kind of strategy that is, but it was a really shitty one for a long time.
That all changed earlier this year when Gold Miners $GDX finally broke out above 31, which had been our key levels for years. And the metal itself broke out above 1580 or so which had been our equivalent level there.
Welcome to my new Monthly show that I'm doing with my friend Josh Brown. He is one of the most widely followed Financial Advisors in the country, and someone who I've been arguing with about markets for the better part of 2 decades.
Every month I'll bring a handful of the the most important Monthly charts that stood out during my review. In our first episode, I wanted to discuss the S&P500 making new all-time highs, Transports leading the way in July, Rates hitting new all-time lows and Bitcoin starting a new breakout.
This is the chart that I think tells the July story best. The further to the left the asset is, the closer it is to a new a 52 week high. The higher up the asset, the better its performance in July. Notice Transports in the upper right: Relative weakness overall, BUT the best performer this month, followed by Emerging Markets, Gold and base metals. The lonely US Dollar down below stands out doesn't it?