Gold Dips After Traders Weigh Hiring Resilience, Factories Flub
Comment of the Day

November 01 2019

Commentary by Eoin Treacy

Gold Dips After Traders Weigh Hiring Resilience, Factories Flub

This article by Justina Vasquez for Bloomberg may be of interest to subscribers. Here is a section:

“The jobs data was not really inflationary but very good for the stock market,” George Gero, a managing director at RBC Wealth Management, said by phone Friday. “On the other hand, you don’t see any kind of a sell-off because of all the global worries. So now it’s a waiting game to see what will happen with interest rates and the stock market and all the worries.”

Eoin Treacy's view

I like that expression “all the worries”. It implies the only reason gold can rally is because of worry about something else. There is some accuracy to that statement but the bigger point is a hedge is a risk mitigation strategy. If you are not worried about something as an investor, it is really time to take a close look at one’s portfolio. The best definition of bravery I have heard is “feel the fear and do it anyway”. That’s about as close to the best maxim for investing I have ever seen. When we worry about nothing, and are supremely confident in our convictions, it is usually when we are at most risk.

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