30 Year Treasury Bonds

Crashes Below 2%

Closes at 2.03%  

DYI:  DYI has been negative on the stock market for longer than I care to admit and yet people forget – as the market powered ahead – that unless you sell your holdings turning stocks into cash or gold all you have are digital numbers on a screen.  I know people have been turned off from this blog thinking this guy has no idea what he is talking about and yes from time to time DYI has been flat out laughed at! 

This is what a historical driven contrarian is all about!

It has finally happened the 2 year – 10 year Treasuries are now inverted signaling every recession since World War II!  But hey the central banks big boys and girls of England, European Union, and Japan all think this time will be different.  Those four little words have destroyed more money than an addicted gambler at Las Vegas.  They believe negative interest rates will do the trick stopping the recession before starts dead in its tracks.  I have news for you central bank geniuses Mr. Market always has his way in the end.  You can hold him off with your games – and you have done that in spades only to create bigger imbalances in the economy to be worked off.

It’s not the recession that financially destroys corporations, governments and families IT’S THE LEVERAGE. 

Recessions come and go like the March winds when you have zero leverage [borrowed monies] what happens you end up making less money, tighten your belt for awhile and ride out the modest downturn.  The leverage we have in our economy at all levels; and to keep the party going by maintaining and encouraging debt expansion the Fed’s will move to negative rates.  So far many nations in Europe are already there attempting to keep the dead horse alive called the European Union.    

So far this go around the banks have not been making very many crazy loans that would blow up in their faces like the last time around.  What I envision is a mild recession that most folks will be able to ride out without much pain.  However for those folks who have refused to lower their debt bankruptcy will be right around the corner even in a mild downturn.

DYI is well suited to take advantage as the stock market turns sour and market players have a flight to quality in gold and long term Treasuries.  Enjoy gold’s and silver's rise while we wait for better valuations to appear in traditional stock and bond investments.

Till Next Time    

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 08/1/19

Active Allocation Bands (excluding cash) 0% to 50%

68% - Cash -Short Term Bond Index - VBIRX

32% -Gold- Global Capital Cycles Fund - VGPMX **

 0% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

**Tocqueville Gold Fund TGLDX is a pure play 100% junior gold mining gold fund.  Vanguard's Global Capital Cycles Fund maintains 25% in precious metal equities the remainder are companies they believe will perform well during times of world wide stress or economic declines.  

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 DYI