Global Outlook

By dirtydog | Published: November 26, 2009

Admin: I have updated my ETF Portfolio. See the “ETF Portfolio” page at the top.
Equities: According Goldmans, equities should rally into December. I am also hearing that China has a long way to go yet. Not the same story for Japan which has been heading south since August. But bulls are still definitely in control. Not time to sell yet, I don’t think even though Dow has posted gains for the 4th week.
Bonds: Yields on TIPs are now negative (from Hussman). IEF yields are now 3.58% as opposed to TIP’s 3.38%. Time to profit take some profit here?
Commodities: Glad to know that commodities are still holding firm. If you believe (as I do) that commodities are still a good inflation hedge, with DBC now yielding 3.47% – the same as bonds. Commodities only take up 7% of my portfolio. Perhaps DBC and UNG are good candidates for rebalancing against my TIPs. I did not notify you that I have been accumulating natural gas. Abundant supply and other concerns regarding the size of the fund has beaten this baby down to multi-year lows. Has this hit bottom? Watching like a hawk.

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