Pumping John HussmanHi all -
I mentioned this writer / fund manager in my blog, but the more I read his work the more I want to spread the word directly to the people. He writes a weekly market commentary, available for free on his website, and it is absolutely essential reading. Do not miss. https://www.hussmanfunds.com/weeklyMarketComment.html
I realize this post reads like a pump, especially considering it's off topic - a sure sign of spurious intent. What can I say? I love the guy. Here is an excerpt from his latest commentary, which usually does not call out the PM sector specifically, but on this occasion does:
"In precious metals, the Market Climate appears extremely favorable, featuring downward yield trends, upward inflation trends (and in combination, a very hostile environment for the U.S. dollar), economic weakness evidenced by a weak ISM Purchasing Managers Index among other factors, and a gold/XAU ratio that is well above 4. This combination of conditions has historically generated an unusually strong return/risk profile for precious metals shares. Still, the volatility of these shares and the fact that they have advanced significantly already should restrain overly speculative exposure to this sector. Having increased our positions on prior short-term weakness, Strategic Total Return Fund currently holds just over 23% of assets in these shares, which is a large yet acceptable exposure to this sector in light of the historical tendency of similar Market Climates to generate strong returns for precious metals shares." (From John Hussman, "Minding the Hinges on Pandora's Box, January 7, 2007, https://www.hussmanfunds.com/wmc/wmc080107.htm)
Enjoy, and thanks for reading - great board as always.
Rob