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Ron Paul's Investment Portfolio

What's wrong with such a concentrated portfolio? When you're right, you're right. At various times I've hedged my bets, holding junk like C and FNM. It's instructive to look back at my performance over time: every single stretch of underperformance matches a period in which I held something I did not believe in "just in case I'm wrong". I applaud Congressman Paul for saying what he means, meaning what he says, and putting his own personal fortune on the line in a manner entirely consistent with his values. And I don't hedge any longer: my portfolio has a lot less mining than the congressman's, but a lot more physical gold - a holding he almost certainly has as well but (wisely) does not disclose. Why should he hold assets he does not believe are valuable? If you want "diversification" go ahead and buy that crap. But this is not a time for diversification; it is a time to look at the obvious macro trends and take advantage of them. That or sit in cash and cross your fingers that that's still worth something when this is all over.

What’s Behind the Slide in Gold and Silver?

The surest bet in the game right now is short Treasuries. Supply is bloated and growing, demand is weak, yields are well below inflation, and the issuer has some real serious fundamental problems. 3%, I have to pay taxes on that pittance, and if interest rates rise (IF?!) I lose on a mark-to-market basis, too. Who'd want em? Oh, yeah...idiots. I'll give you two scenarios: (A) the US economy recovers quickly and the Fed raises rates to mop up all the excess liquidity. (B) the US economy goes in the tank and the US ends up in real trouble, with tax revenues plummeting, government expenses rising even further, inflation soaring, and the dollar in free fall. Now, in which scenario do your Treasuries rise? That's right: neither. Convince me that there's a third scenario and I'll listen. Until then, wanna buy some Treasuries?