A Look Back And A Look Forward

Were you out of the market at the top (October 9, 2007) and at least 63.08% long the market at the bottom (March 9, 2009)?   These were the stock (SPY-S&P500) positions of the fact-based GoldBondStocks system.

Do you capitalize on market volatility?  The GoldBondStocks system benefits from volatility in both stock market and inflationary expectations. These benefits are derived from the principles of “dollar cost averaging”  and of “rebalancing”.

Whatever is not invested in stocks (SPY-S&P500) is half invested with an inflation bias (GLD-Gold) and half invested with a deflation bias (TLT-Long Term Treasuries).  We’ve certainly had volatility in inflationary expectations and I think the future volatility in these expectations will be even greater.    Will Bernanke step on the brake as hard as he stepped on the accelerator?  When he steps on the brake, there is only one sure result.  These 3 markets will be volatile.

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