Ever since the precious metals topped out last summer I have been a balancing fool, using the gold and silver stock positions I chose not to take profits on and those I’ve been adding along the way as a risk ‘off’ counter-cyclical foil to the risk ‘on’ cyclical stuff I hold to this very moment. I’ve lightly/nimbly shorted both sides, precious metals and stocks, but shorting activity has been well err, short of long positions in each case.
Somehow this balancing act of long stocks/long miners sees the portfolios near their highs despite HUI being well off its highs and SPX getting the Trade War jitters routine again lately.
The inverse correlation does not always work to perfection but as this 15 minute chart of SPX and an upside down HUI shows, it’s worked well lately and it’s working like a charm today.
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