Established a few new positions in my IRA over the past week, which include:
~5% Gold (Ticker GLD)
~4% Agricultural Commodities (Ticker DBA)
~4% S&P 500 Short (Ticker SH)
The position in gold is based on my belief that central banks begin printing more money, devaluing fiat currency. In addition, I believe we may see increasing destabilization of regions of the world, making precious metals more attractive.
The position in agricultural commodities is based on prices for many of these commodities trading at relatively low valuations, suggesting that there may be a rationalization in some production over the next year.
The position that effectively shorts the S&P 500 is based on the S&P 500 trading near the high end of its recent trading pattern. Based on my view that European economic activity continues to slow and other regions remain slow, I expect the market turn-around. It is also a hedge to help cover any downside in the equity markets in the near future.
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