Respirate

Gold, Oil and Fixed Income? They're All in This CEF (GGN)

Thanks for another interesting article. Always enjoy your clear and entertaining writing style.

GGN sounds like a fine addition to most portfolios in this kind of market. I don't believe the current market rally will be sustained. It's seen a strong rebound from an oversold state, but the rise has been on low and declining volumes, and is spurred on by earnings so weak that they only look ok against "beating" low-ball estimates. Also, like many SA followers, I have serious doubts about the US economy's rebound, despite bull claims that it's just around the corner. We have worked only part way through the 4-5 years of "false growth" excesses; the economy will likely revert to the mean before resuming steady growth at an historical normal rate. Even with government stimulus 2010 looks very weak.

GNN looks promising given its two-sector focus. Increasing demand for a declining energy resources should result in a general upward trend in prices, eventually driving E&P. I've never been a fan of gold investing, but given the extraordinary federal stimulus, inflation should emerge. These are both long term trends, IMO. The large options-funded yield is attractive even if the share price treads water.

Discl.: This afternoon I placed an order for a small opening position, and will "walk" toward a full position if energy shares fall significantly or if the premium narrows.

--R