From my analysis, I'm now confident that the Obama Budget and related behavior of Ben Bernanke quite simply boils down to printing lots of money. Low interest rates are not enough to slay this recession and hopefully, flooding the monetary system with cash will move us towards recovery.
The only question in my mind is, "When will the stock markets start to seriously worry about inflation?" Right now the Federal Open Market Committee (FOMC) has assumed that for the time being, cost of living increases remain "subdued". I suspect that we are several months away from when inflation concerns become strong enough to push spot gold into record new high territory.
My portfolio has done well in the past several days but not as well as the general market which I hear has gained 20% from its lows earlier this month.
Based on the Feb. 5th benchmarks: my portfolio is today up 13.1% while spot gold and the iShares COMEX Gold E.T.F. are up 2.3% and 1.6% respectively. The Dow and TSX are at -4% and -.7% for this time frame.
I've decided to reposition some funds from senior gold holdings into silver, gold royalty trusts and junior gold holdings and will be executing changes over the next few days.
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