In early January 2014 I opined that,
“It might seem to my readers counter-intuitive to have a position in 10-year Treasuries, and at the same time to believe that commodity prices could rebound.”
However, since the beginning of the year, both long-term Treasuries and most commodities rebounded strongly. Long-term Treasuries are up 5%, gold is up 12%, and the Junior Gold Mining Index (GDXJ) is up 52% from the late December 2013 low.
Also, as I explained in previous reports, I would reduce my US equities positions altogether because valuations (and profit margins) are stretched.
I do own some long-term Treasuries because I believe that owning them is an inexpensive and relatively low risk strategy for shorting the stock market.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
