Well, here we are. It’s already Thanksgiving week, and so far, 2019 has been a good year for investors just about everywhere. Stocks, bonds, gold…they are important determinants of overall investment health, and all three asset classes have performed well. In fact, all three are on track to provide a 2019 investment return of 10% or more. That hasn’t been done since 1986. But, good times or not-so-good times, managing those asset classes so that they achieve our clients’ goals is a large part of what we do. Providing the best in client service also is a large part of what we do, so for the seventh year in a row, we ask that most important of all questions: Are we doing all that we could and should be doing for you? In a general sense, the objective always is to become a more valuable member of each client’s team. And, more specifically, as mentioned in the May Update (“The Path Ahead…Problem Solving in the Modern Era”), we always want to be problem solvers in an increasingly solution-oriented business. If we are missing any opportunities to achieve those objectives, by all means please let us know.

Continue reading “Our Regular Civic Duty (VII)” →

“If you’re looking for an insurance policy against volatility and economic uncertainty, gold is a great way to go…the whole point of diversification is to be prepared in case something goes wrong and your thesis doesn’t pan out.” -Jim Cramer, CNBC

“Say, answer me this, will ya? Why’s gold worth some twenty bucks an ounce? ” -Howard (Walter Huston), “The Treasure of the Sierra Madre” (1948)

In a world of zero inflation, negative interest rates, and trade friction, gold so far has had a banner 2019. Our proxy is Engelhard industrial bullion. Between January 1 and August 31, one troy ounce has gone from $1,283.83 to $1,528.00, an advance of over 19%. As surely as night follows day, many early-year naysayers have jumped on board, and talk of $2,000 and above has started to percolate. Maybe; but, we try never to get too carried away, and instead, like to focus on why an asset class does or does not belong in our clients’ portfolios. In this case, the asset class does belong, specifically as an honored component of our Total Portfolio Management (TPM) and Indexed Total Portfolio Management (ITPM) strategies. Why gold?

Humankind has had a fascination with and a reverence for the barbarous relic since about the time our ancestors discovered fire. Since then, gold has been used to adorn ears, necks, wrists, clothing, etc.; gold has been used to cap teeth; gold has been used in numerous industrial processes; gold has been used to treat disease; and, gold in an investment sense has been used as an alternative to fiat currencies and as a store of value. For these purposes, let’s focus on gold in the monetary/investment world of the modern era, and start with something called Executive Order 6102.

Continue reading “The Barbarous Relic” →