Austerity is Still the Elephant in the Room
The employment numbers certainly put a good face on the current economic situation. What looms going forward is the direction of the elections and whether the US follows Europe into the doldrums.
At the moment we remain with our austerity based portfolio, 80 percent short gold and 40 percent short stocks. This is not the kind of portfolio for everyone but it actually worked decently on Friday, the game change day. You have to keep in mind that our primary posture is contrarian and defensive until the core issues are changed.