Short-Term Key: Negative    Long-Term Key: -85.5 (Neutral to Bearish)

 

Chinese New Year began two days ago and marked the start of what Chinese astrologers call the “Year of the Metal Tiger.” In light of this, we have decided to review some of the major investment themes for the months ahead.

 

First among these themes, we now feel you should regard precious metals – and especially gold – as an asset class unto themselves. Over the past 40 years (and especially the last 10), they have proven themselves to be important holdings in good times and bad. By good times, we mean periods of inflation and growth. By bad times, we mean deflation and recession.

 

Admittedly, gold does lose its value as an asset class during the very best of times, such as we had from the early 1980s to the late 1990s. Unfortunately, those days are not likely to return. Instead, we will likely see cycles of inflation/deflation from now on, in which gold shines.

 

Naturally, your gold portfolio should be diversified to maximize safety and growth.