Loading ...Cashed in my chips for Blue Chips
Using this tool www.portfoliovisualizer.com/backtest-portfolio, I decided a while back to cash in my gold coin and put the cash to work with dividend paying, brand name, blue chip stocks (HD, JNJ, KR, MCD, MO, PEP, PG, WMT) that everyone knows, needs and uses. Looking at the historical performance of this portfolio versus any gold and/or silver portfolio I could dream up, I decided that I had thrown enough money away on gold and silver. I could get lucky with gold and silver, but it’s more likely that I will get frustrated.
Since we are at all-time highs and due for a correction, I have deployed only 25% of my cash into this portfolio and I am content to earn 2% on the remaining cash until the inevitable 25% correction occurs at which time I will begin investing more funds into this portfolio.
Good luck chasing gold and silver, just not for me anymore.
PS: I kept one silver coin because it’s pretty and I love looking at it.
Bold Move trader Scott and I applaud you for breaking free of this addiction we are all afflicted with.
Good luck…seems like a sound strategy
Only problem is you may never get that big pullback for a long time.
It’s coming, can’t say when, but I’m a very patient guy.
Glad to read this, traderscott. It’s another indicator (sentiment wise, together with cycles, chart-patterns and late-cycle economic indicators) that Gold has begun a *new* Cyclical Bull Market.
I sold over half my stock portfolio in September 2018 (and looked very smart…until recently!)and only began increasing my allocation to Gold last June.
Best of luck to you.
Perhaps both gold and “dividend paying, brand name, blue chip stocks” will, defying expectations and trusted indicators, will tank.
It could happen. Trump wins re-election by an undisputable margin of the popular vote. Spending goes wild and the Fed refuses to monetize the Federal debt, causing MUCH higher interest rates and precipitates a deflationary collapse with the SPX dropping more than 50% and gold dropping back to $1,150…or lower.
(I’ll take the bet that the Fed will print whatever is needed – and this time it flows onto Main Street and not just Wall Street.)