Posts filed under “ETFs”
Let’s say this right up front: The SPDR Gold Shares Trust exchange-traded fund has killed the shares of the gold miners.
The primary reason for this is straightforward: Gold is bought and sold based on a narrative that has turned out to be patently untrue. As we move further away from the great credit crisis of 2008-09, the global financial system has stabilized, undercutting the appeal of gold as a hedge against catastrophe. The U.S. economy is improving, as are those of many other countries. The wild inflation and collapse of the U.S. dollar that was going to lead to the demise of civilization and make gold an essential for investors? None of that has happened. Instead the world has low inflation or even deflation and the dollar, the world’s reserve currency, has risen to multiyear highs.
Unlike the metal, which is formed in the supernovae of second generation stars, the rationale for gold ownership isn’t eternal. It ebbs and flows along with a variety of inputs, including the strength of the dollar, inflation and, of course, mass psychology.
Last week, rather than discuss the metal, I asked the question “Are Shares of Gold Miners a ‘Buy’?” But today’s missive is about something more nuanced than gold — I want to address the question of the divergence between gold and the gold miners. It is a intriguing issue.
continues here Good Luck Bargain Hunting for Gold Miners
Every now and again, I disagree with an article written by someone I like and respect. On occasion, an author will crank out a column that makes me angry. And on rare occasions, I will read something where I disagree with just about every sentence. Today is one of those total disagreement days. Marketwatch columnist Paul Farrell…Read More
Now before I commit blasphemy, a few words: I am as close to being a Boglehead as you will find, without actually being one. The bulk of my portfolio is in passive indexes. Most of the assets I manage are in a broad allocation model. This is a tribute to the wisdom and teachings of investing…Read More
Buying and holding stocks and bonds for the long term and maintaining a diversified portfolio are still the smartest strategies for the average investor, says Vanguard founder Jack Bogle in answer to Mark Cuban and other critics of these traditional approaches. In the Big Interview with Journal columnist Jason Zweig, Bogle takes aim at the culture of market speculation. Betting on long odds, he says, “doesn’t pay off very often.”