A Week Too Early

by JDH on September 7, 2019

Last week’s post described how I was Increasing my Allocation to Gold.  On Thursday, gold was down $35, for it’s biggest one day drop in 3 years.  So either I’m wrong and gold is going lower, or I was early in increasing my gold allocation.

I believe I was early, but not by much.

Three months ago gold was at $1,320.  On Friday it was still decisively over $1,500, so I don’t see a big crash in progress.  This looks to me like a correction, and a minor one at that, so I will continue to add to my positions in the coming weeks.

I believe gold is going higher, but there’s another factor here as well: sector rotation.

The cannabis stocks had a great run, we all made money, but unless there is an impetus for those stocks to move higher, they will stagnant, and investors will continue to sell them; where do they put that money?

What’s the next hot thing?


That’s my thought; we’ll see if I’m correct.

More next week.