The D-J Industrial Average, the Transports and the S&P Composite have all recorded record highs recently. On this count, the primary trend of the stock market is bullish. But from the standpoint of values (dividend yield for the S&P is 1.96%), the market is dangerously overvalued.
To be invested in the market is dangerous. To be out of the market, from a money manager's perspective, is unacceptable. What to do? Is there a reasonable neutral position? I think there is. My choice for a neutral position is to be in silver and gold.
But what if you don't know how to establish a silver-gold position? Then my second choice is to be in a trust that holds silver (40%) and gold (60%) safely in Canada. That trust is CEF, the Central Fund of Canada -- pictured below.
Meanwhile, the Dow is acting well. The chart below shows what I perceive to be a head-and-shoulders ... Log in or subscribe to continue reading.
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