This mornings action makes me feel a great deal better about our hedging and risk reduction over the past month. Getting defensive when the market is in a downturn not only preserves your capital but your state of mind as well. Keeping a clear and unemotional frame of mind is very important since it prevents you from being emotionally shell shocked when the time is right to buy again.
If you’re a mutual fund investor you should be aware that tactical shifts in assets and risk are rarely done if ever. Most funds are obligated to remain fully invested in their strategy regardless of the economy. Our ability to adapt and hedge risk is a great advantage with markets in turmoil.
Not all markets are in turmoil though………..Gold is an unrelenting beast.
Long GLD