dsrtwriter

Portfolio Performance: Positive. Market Outlook: Hazy

Davy's analysis is well considered. Regarding the bounce back after the 70s and 80s, I don't think it is analagous to today, where we have massively outsourced our manufacturing to a dangerous point in the name of the religion of "free trade and efficient allocation of resources".

The "consumer" always wins with free trade and low prices, until the "consumer" loses his job when his plant closes. Of course if we are all government employees, professors with tenure, or lawyers, we love low prices from overseas because we do not produce goods.

Truly a house of cards,endorsed my most economists (except myself).

Gold Sparkles During Financial Crisis - Barron's

Yes, gold has traded on emotion and perception....for over a thousand years.

The U.S.dollar is, what, just over 200 years old? Sure, those of us holding some gold would have been smart in hindsight to sell gold before the dollar rose.The problem is that it appeared to make no sense,when the Treasury was creating dollars de novo to swap for worthless mortgage securities.

Oh, I forgot, they are supposed to sell those securities when they "rise in value".

The lesson: gold is down this inning, but the story is not over. I am not a gold bug, but it is comforting to have ten percent in gold for the long term.