Jay’s Latest Personal Portfolio Allocation

Time will tell whether or not this is a mistake. But I have reduced my cash, increased my bear market strategy in FAZ, and increased my gold and silver share position somewhat. I have also reduced my gold and silver bullion somewhat from where it was before. Obviously, I’m betting on a major stock market decline. I have been around long enough and have had my ears boxed in often enough to humbly tell you this is what I believe but that I could be wrong. I’m not seeing anything from an intellectual point of view that tells me I could be wrong. I just know that you never know for sure what the future holds. In a major way, I hope my gloom and doom are unwarranted. But I think the following quote from Dr. Robert McHugh sums the picture up as well as anything anyone else is saying. In a late Friday afternoon missive,

“This weekend's report examines worsening conditions in international markets, in spite of the Bullish propaganda the mainstream media would have us believe. Huge Head & Shoulders top patterns are completing; Monthly and Daily Full Stochastics are either on Sell signals or topping; 50 Day Moving Averages have fallen decisively below declining 200-Day moving averages. And more.”

Once again, I could be wrong. But I’m holding my relatively high level of short positions because I believe with all my heart and soul that we are in a decline that will strike the fear of God in the hearts of Americans like nothing seen in recent decades. And with that fear will come a savings rate that plunges us into the depths of economic despair. I hope I’m wrong. Who in their right mind could want such an event to unfold? But this is what I see and so I’m acting accordingly both on a personal level and in what I pass along to you.