Look at the Finance Section of any newspaper or news website for the past 10 months and you can see the recent global news about national conflicts, massive frauds, money laundering, Black Monday, insider trading, stock manipulation, riots, rates hikes, commodities prices slide, one after another like dominoes.
Although there isn’t much blood in the streets yet (with China’s market crash being the most devastating thus far), my gut instinct is telling me that there are lots sharks waiting to pounce on any opportunity that is to come. Not just any sharks, but big smart sharks which do not eat just anything. They aim for big easy preys and reduces their rate of failure by analysing their victims’ habits so well they make little mistake. Even when mistakes happen, they’re disciplined in following their escape plan back to a safe location to fight another day. This is survival for the long haul and how every investor should aspire to be like. Smart sharks.
When I read HouTian’s (The Forex Trader) blog post he recently wrote about his take on Where we should park our money next, I became a little more interested in Gold as a hedging tool. He explained how USD is weakening and that the price of Gold is historically proven to move against the US Dollar. However amidst all online gold MLM/scams, I think I personally still prefer to speculate or hedge using Gold via the HUI Index (Arca Gold BUGS Index) listed on NYSE.
Below is the comparison of SPY Trust and HUI Index respectively. You can see the unique volatility times during each past global crises.
The Independent Abecedarian