Tuesday, April 8, 2008

Reduce exposure to commodities

Since I added last week, commodities in general were about 2 to 3% higher. I cut the exposure today, sold all SLV, some DBA and DGP. Now I have cash to add on the dip.
Long term, still like gold and silver. But there is a G-7 meeting this weekend (central bankers may try to boost dollar); and IMF's sales of gold; and we may have deep recession, according to Fed. All these can trigger another round of deleverage of commodities, so rather be safe than sorry.
If commodities rally, I still have positions in DBP, DBA, DBC, GLD and DGP.

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