1-03-17
Updated Monthly
Gold Prices1-02-16 $1075.05
1-02-17 $1147.60
Up 7% (rounded)
Current Allocation - Short Term Bonds
Allocating between short term bonds
&
ultra long term bonds
Every month DYI will look back to gold prices from one year ago as compared to current prices. Simply when gold prices are below from one year ago deflationary forces are at work. The most common reason a recession is coming and with it declining interest rates at least in the short term as the demand for money cools off.
Conversely if gold prices are higher than a year ago inflationary forces are at work. The most common is a growing economy which will soon push rates higher at least in the short term.
This is a cyclical measure for allocating between short or long bonds as opposed to secular[very long term] moves in the markets.
When gold prices decline from one year ago - Buy Long Term Bonds
When gold prices increase form one year ago - Buy Short Dated Bonds
Disclaimer
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