Gold Continues the New Uptrend

I just noticed today that the Gold ETF (GLD) is now at a new 8 month high. The Gold Miners ETF (GDX) is at a 12 month high. US Stocks are still hovering just above the half-way point between the all-time highs last August-September and the lows the day before Christmas. Bonds have recovered somewhat since the Fed started hinting they may stop raising interest rates for awhile. In fact, bonds have started a new uptrend.

Stock risk has dropped as volatility has dropped, so we have gradually been adding back to our stock positions. However, we are still very underweighted in stocks because they have not yet reestablished an intermediate uptrend. A quick glance at a chart over the last six months or so will show you why. Gold and bonds are still the only major asset classes in our portfolios in an uptrend.

Have a great week.