The Fed Steps In

What a wild ride since Friday! Over the weekend we heard about more cases of the virus and more deaths. On Monday (yesterday), we saw markets test the lows of Friday during the pre-market hours, then rally during a very volatile day for a big percentage gain.

This morning stocks began to weaken and began to sell of when, BANG!, the Fed announced an emergency 0.5% rate cut! Wow! But wait! After an almost instantaneous multi-percentage rally, stocks began selling off again … and again … and again… and again.

As of this writing at 1:05 PM, Central Time, the S&P-500 is down more than 3% from Friday’s close. So that’s the bad news.

The good news is that our holdings in gold and bonds are up by more than stocks are down. And the aggressive accounts are really benefiting from the rally in gold and silver.

On Friday, then on Monday, I put some of our cash back to work. Now we are 40% invested in the standard methodology, 10% in silver, and 50% in cash.

Thanks for your trust.

We are in good shape.