Monday, November 18, 2013

Alpha-D Update for 11/18/13

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.