Anticipating some questions regarding metals and currencies in light of a potential resolution to the near term budget crisis.
1. I like Gold, Silver and safe haven currencies like the Swiss Franc for the long term. Once the current issue of the budget is resolved we still face the tsunami issue of total debt to GDP. Long term being defined in 2-4 years time frame.
2. Are you still focusing on SRI and green/humane investing? Of course we are but we must also be agnostic to the realities of debt to GDP and its impact on equities. We don’t own any mining stocks or consumer non cyclicals such as factory farm companies. Macro issues like debt can and will dwarf the positive impact of green equity investing. To ignore this reality is to be naive or oblivious to the facts as say…..an American politician.
3. The diversification into Gold and currencies is a balancing of risk to dollar denominated equities. Our primary responsibility is to our clients and their assets not to our holdings.
4. If you’d like to learn more about the issues we face from a long term perspective, I’d suggest you follow the link: “A template for understanding what’s going on” by Ray Dalio of Bridgewater Capital
And…………a new Clapton album is coming! Eric Clapton and Wynton Marsalis live from the Lincoln Center due September 13
Long GLD, SLV, FXF