Deflation is Still the Topic
While we have had success in our comments on the dollar and interest rates over the past year, our biggest contributor to portfolio asset growth has been our deflation posture and the short gold and commodity positions.
My biggest mistake recently has been been getting out of the short gold position way to early and moving that short money into additional short stocks. What to do at this point, should we move the money out of short stocks and back into short gold ? Good question, but at the moment I am still watching and feeling the pain.
Here is a column that takes a good comprehensive view of things.