Gold up big. Stocks are down

Well the timing of my decision to take profits in stocks and real estate last Tuesday turned out to be fortunate. The allocations to gold and US Treasuries are up strongly, US stocks are down more than 1%, and real estate is about flat, at this writing on Friday afternoon.

Of course, this could be just another minor pullback in stocks, like all the others we’ve had the last 10 years. In fact, you could say the markets were getting ahead of themselves and this pullback is very healthy. So, I’m not making predictions. That is not our business.

Our business is investment management with a primary focus on risk management. Getting good long-term risk-adjusted returns is a worthy goal. It just doesn’t seem to me like the markets are properly pricing in the risks of the corona virus, the ever growing consumer and corporate debt, and the various political issues we face around the globe.

Have a great weekend.