This month's portfolio update is pretty much like last month's update. My covered calls on FXF expired unexercised. I renewed them because I believe the Swiss franc has stabilized in value and I'm willing to extract some cash flow. My cash-covered puts under GDX also expired unexercised. I renewed them because I wouldn't mind picking up more cheap shares in the beaten-down gold mining sector. Gold mining stocks are not a perfect hedge against high inflation. I expect to eliminate them completely at some future date when inflation makes them desirable for the masses to buy.
I remain long FXA and FXC with no changes, because I am confident that the Canadian and Australian governments will not devalue their currencies in competition with a US dollar devaluation. I maintain my long put position against FXE in the expectation that the euro experiment will unravel. I still have plenty of cash, ready for . . . an event.
I remain long FXA and FXC with no changes, because I am confident that the Canadian and Australian governments will not devalue their currencies in competition with a US dollar devaluation. I maintain my long put position against FXE in the expectation that the euro experiment will unravel. I still have plenty of cash, ready for . . . an event.
