April 11, 2018
Jeff Grundlach is considered the reigning “bond king”. What is a bond king, you ask.
Well, he is viewed as the supreme ‘expert’ in bonds. So when he speaks investors listen.
Jeff Gundlach, who currently manages over $100B at DoubleLine Capital, said
“Gold is negatively correlated with the dollar. We see that gold broke above its downtrend line. But now we see a massive base building in gold. Massive. It’s a four-year, five-year base in gold. If we break above this resistance line one can expect gold to go up by, like, a thousand dollars.
Will it happen? Well it’s not happening right now but it’s a very interesting juncture. It’s a great time to be buying gold straddles. Because one way or the other this baby’s got to break in a big way.”
We use GGN as our way of participating in the gold market. We have owned for many years. BUY GGN. Currently paying 12%.
FUND DESCRIPTION: GAMCO Global Gold, Natural Resources & Income Trust, formerly the GAMCO Global Gold, Natural Resources & Income Trust by Gabelli, is a non-diversified, closed-end management investment company.
INVESTMENT OBJECTIVE: The GAMCO Global Gold, Natural Resources & Income Trust seeks to provide a high level of current income. The Fund’s secondary investment objective is to seek capital appreciation consistent with the Fund’s strategy and its primary objective.
FUND STRATEGY: Under normal market conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating of companies engaged in gold-related activities. In addition, the Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production or distribution of natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals and minerals as well as related transportation companies and equipment manufacturers.
Rules of the Road: Every so often we mention some rules in investing.
Never, never, ever buy an Annuity. They sound great but they are sold by insurance salesmen, and they are the biggest scam on the planet. Avoid. Just Google search and you can find articles talking about how bad these are.
Don’t trust your money to brokers or “wealth advisors” who only want to collect commissions. If you are not managing your own money, use a Registered Investment Advisor. Go to https://www.napfa.org/
Never buy more than 4% of a single position. At a maximum of 4% you would have around 25 positions in your portfolio. Learn from the mistakes we have made: don’t go above 4%.
Generally speaking, you do NOT want to own bond FUNDS. We prefer individual bonds and target date bond funds where the fund closes on a specific date.