All that’s gold doesn’t always glitter. March 23, 2012
Oakville, ON, Canada – One of the investments of the last decade has been gold, but it’s lost its shimmer over the last three or four months. After rocketing to a new all-time high in in August of last year, the metal has been correcting sideways, bouncing between its long term trend line on the bottom and +/-1800 on the top end. Gold is once again bouncing up off of that long term trend bottom of about 1650 but its direction is still very much unclear from here, with continued equity market uncertainty and central bank selling being rumoured
With the rest of the world very much mired in indecision and doubt, the prospects for gold and the risk management opportunities it affords are hard to ignore, but a retreat and test near the 1400 would provide much better risk-to-reward.
Current CastleMoore equity holdings are in currency, utilities, consumer staples and telecom. An initial position in energy was recently added. We continue to monitor sector rotation into the pro-cyclical group of industrials, materials and consumer discretionary sectors. Cash levels span 40%-60%. Long Canadian government bonds remain a fixture in most portfolio types.
Robert “Hap” Sneddon, Portfolio Manager, CastleMoore
For more information or interviews, please contact Jason Dubbeldam at (905) 582-7350 or jason@castlemoore.com. CastleMoore is a Canadian-based global asset allocator specializing in progressive discretionary portfolio management that blends technical and macro fundamental methodologies to manage client portfolios. CastleMoore Inc. Buy, hold and know when to sell.
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