The Grasberg-Saville Gold Rating (GSGR) spent its 8th week in bearish territory below 50. Nevertheless, the gold price remained fairly firm, which we perceive as generally bullish. The GSGR bottomed out in the week of 9 September and has since made a higher low (10/21). This indicates a slight improvement in referenced fundamentals.* *The Grasberg-Saville Weekly Gold Rating measures the following fundamental drivers: Treasury Inflation-Protected Securities (TIPS) KBW Bank Index Inverse Change Ratio 30-Year/Dollar Ratio 30s/5s Yield Curve Change Ratio
1.) We buy stocks at or near the bottom of their respective cycles. When they revert a little, we sell them and use the proceeds to buy other stocks at cycle lows. We do this over and over and over again. That’s it. 2.) And because we know beyond a shadow of a doubt that we aren’t the brightest investors on Earth, we diversify in spite of its probable impact on alpha, and we ignore anything without a substantial perceived margin of safety.