Gaurav S. Sharma's  Instablog

Gaurav S. Sharma
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My areas of interest and expertise include technology, biotechnology, and financials, among others. I have a long-term strategy and am both a growth and value investor. My picks have consistently outperformed the market and I expect them to continue to do so. As an investor, I have had great... More
  • SoL #3: How I Dealt With Ukraine Today 0 comments
    Mar 3, 2014 6:04 PM | about stocks: GLD

    Before I start, I would first like to express my sympathy for those in the Ukraine that are detrimentally affected by this tragic situation. That said, last Friday, I wanted to hedge myself against the drop in equities that I predicted would happen on Monday following major developments out of Ukraine that would inevitably come out over the weekend. Gold is usually a great thing to own when major global crises are occurring. Naturally, I sought gold for protection to my portfolio and bought some of the gold price-tracking ETF GLD (NYSEARCA:GLD).

    As we soon found out, Russia invaded a part of Ukraine and threatened further action. Ukraine said it was preparing for war. The United States and European Union condemned Russia and threatened to impose sanctions. All in all, it looked quite similar to Russia's 2008 invasion of Georgia.

    GLD Chart

    As I thought, this did panic investors and we saw a huge stock sell-off in all the indices. Gold, on the other hand, soared today, as I expected. It was up around 2.1% as opposed to a 0.74% decline in the S&P 500.

    GLD was a very successful hedge and turned a down day for me into a nearly flat day. However, I again express my condolences for those affected by this.

    Disclosure: I am long GLD.

    Stocks: GLD
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