(As you might expect) I’ve been watching the tape pretty closely these last few days and, up to today, my opinion on the market has been “rough, but orderly”. Not any more, today was panic, today was selling for the sake of selling because if not the other guy is going to sell in front of you, today’s the one that gets the Broker, Head In Hands photograph on the front page of your preferred daily tomorrow. The spark should not have come as any surprise to money, either, it was only a matter of time before WHO declared this a pandemic, but there was nothing there to cushion the news, no other leadership on Covid-19 (outside of WHO). Depending on your political stripe, you will of course blame this lack of leadership on The President, on Congress, on The GOP, the DEM or The Federal Reserve for that matter, but whoever is supposed to be up there is conspicuous by their absence.
As for my crash-hit portfolio, there are similarities between it and Covid-19 prevention: Make sure everything is clean, invest in quality, do not panic, have patience, wait it out because things will be better soon.
And as for the opportunities that it provides, start with gold that is going to go a lot higher in the next couple of quarters*. Then if you want to add some juice to the port, find yourself a gold company that has just raised all the capital it needs to puts its Santana mine into production and will start producing in Q3 this year. Work the rest out for yourself.
*Timestamp U$1,635/oz, will return to this post after Labor Day.