Back to Within Spitting Distance of All-Time Highs for the S&P-500

Well my mind is officially blown. I could never have imagined getting back to these levels on the S&P-500 so quickly. I thought it might take a few years like the recovery after 2009.

As further proof things are crazy, gold is up 33% YTD while US long term treasuries are up 25% YTD 2020. Wow. And this huge run-up in the SPY’s has them at 3.5% up YTD.

Although this Friday looks to close in negative numbers for the SPY and the QQQ, it has been an amazing 10 day run. I can’t wait to see what is next.

Volatility has been slowly shrinking for stocks, but has increased for gold, silver and the miners. Happily, all three of those assets have been hitting new highs almost every day for the last month or so. This may be counterintuitive, but upward volatility is almost as dangerous (risky) as downward volatility, because these assets fall faster than they climb. So… I’ve been rebalancing the position sizes of gold, silver and the gold miners in any accounts where they appear during this runup.

We end the week with a lot of cash. I’ll be reinvesting as the overall portfolio volatility dies down some more.

Have a great weekend.

Dale