nice discussion....sounds like Fleckenstein would have a large percentage of assets in bullion, contrary to many others.
Puplava commented on gold this weekend, and said he thought it was 'against all investment principles' to have something like 40-70% bullion in a portfolio. He would recommend a more balanced mix of stocks and bonds...but then, he does not think we will have an 'armageddon' moment....if we do have such a moment the stocks and bonds will probably do very poorly, and even if we dont have such a moment, it is still possible for them to do poorly, as fleckenstein comments.
I was speaking with a friend yesterday about this issue, and she is putting her money with Peter Schiffs group, who has the money mostly in foreign stocks, with dividends, that are denominated in something other than euro, dollar or yen, such as norwegian or australian companies. While this sounds perhaps more balanced, it would seem unlikely that these markets will not decline in tandem with other world markets, if such a decline occurs. Schiff is seeking protection against a declining dollar, but if that is the concern, why not just own bullion rather than these other shares?
rp |
