Monday, September 23, 2013

Alpha-D Update for 09/23/13

It's that time of the month again.  My covered calls on FXF expired unexercised and I renewed them for another month.  I remain long GDX, FXF, FXA, and FXC as hedges against US dollar hyperinflation.  I do not concern myself with recent wild fluctuations in currency values or the collapse of the gold mining sector.  Cheaper assets make more attractive purchases.

I am still long a put position against FXE.  The euro is toast and I don't need any dingbat currency traders from FX Invest West Coast to tell me it's poised for a comeback.  The treasurers of multinational corporations with European operations have hedged their euro positions and moved bill-paying cash to other currencies.  Hedge fund suckers who are long in euro holdings will eventually be left holding the bag.

I'm tempted to buy more GDX but I remember my sentiments from last year to wait until it eventually sold away.  Gold is not as effective for hedging against inflation as a broad basket of hard assets.  Given a choice between buying more GDX or conserving my cash to buy other hard assets, I'd rather sit and wait.  The hard asset REITs I evaluated recently, specifically PSA and RYN, are more appropriate for me than more gold.

I also need to reiterate that none of this constitutes investment advice.  I don't give investment advice and no one ever took my advice when I gave it anyway.  My blog articles are only about what I do with my own money.