Tactical Opportunity: Sell High, Buy Low

By Nick Barisheff – Re-Blogged From http://www.Gold-Eagle.com

As Presented to the Empire Club of Canada Annual Investment Outlook Luncheon: Making Money in 2016 from Domestic and International Financial Markets

The market outlook for 2016 presents significant challenges and opportunities that we have not seen for 40 years.

Since I began work on creating our first bullion fund in 1998, I have generally restricted my commentary to using precious metals for strategic portfolio allocation. Everyone agrees that investment portfolios should be diversified. Since gold is the most non-correlated asset class to traditional financial assets it provides important portfolio diversification. A strategic allocation of at least 10 percent reduces portfolio risk and improves returns over the long term.

This year I’d like to discuss a tactical opportunity, a market disparity that exists because of an artificial low in the gold price, and an unsustainable high in financial assets. Everybody understands buy low and sell high. The opportunity for 2016 is to sell high, buy low.

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