Gold, Bonds Helping Balance the Scales, Protect Assets

                                                                                                                             20-August-15

Gold and Bonds are protecting diversified portfolios that include stocks

Since the market's top in Mid-May near Dow 18,300 - Gold and Long Term Bonds (UST) have offset each other: Gold down 6%, Bonds +6%. However, the tide has turned greatly thus far in August, as Gold has gained about $60 an ounce, or 5%, Silver, up 5%, and Bonds +2%.
Thru mid-day, stocks are lower by about 3% this month. Can this rally in the precious metals continue? Stay tuned for more thoughts on that.

Gold, Bonds Holding Up Portfolios in August

With stocks down about 1% this month (thru Tuesday), bonds and Gold are providing a nice offset, rising 1.7% and 1.3% respectively.

Could this latest equity price swoon be the end of the current rally? Time will tell. I can only preach the value of diversification for all but the most risk-averse investors at this time.

~Barry Unterbrink, C.R.P.C.

First 200 Days of 2015 Mediocre

A diversified portfolio using stocks (S&P 500), bonds, 20 year Treasury, Cash (money market), and Gold bullion has returned -1% thru July 17th.

The stock portion was ahead 4.3%, bonds -3.2%, cash even, and Gold lost 5%. 

The above equal mix of investment is diversified and has historically returned a positive 6-1/2% on average over 25 years, with small risk to principal (drawdown) of -2% to -6 over the five negative years (2008 was down 6%).