I’m seeing indications that gold will be in a downtrend by this coming Monday, joining US Stocks, International Stocks and Bonds. I don’t recall seeing ALL of our asset classes in downtrends more than once before. This is not a good thing for portfolios. It basically means that many investors are raising cash, and we should too.
We are already at 15% cash in our diversified portfolios. That cash position will be increasing to 50% on Monday if, indeed, gold’s linear regression slope is negative over the last six months or so.
Risk, both in terms of volatility and trend, is increasing.