Click here: The Weekly Beacon – December 9 2022
We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Gold, Miners, Gold Prices, Stocks, Stocks Reversing, Share Buybacks, Equity Issuance, Value Stocks, Growth Stocks, Shifting Market Focus, Housing Market, House Prices, U.S. Real estate, West Coast Residential, Southern Market Remains Hottest, Population Trends, Median Home Prices, Mortgage Rates, 60/40 Portfolios, Balanced Portfolios, Financial Advisors, U.S. Senate, Bank of Canada, Central Bank Policy, Hike Interest Rates, Energy Prices, Gas Prices, Energy Stocks, Market Fundamentals vs. Price Action.
2022 brought us sky high inflation, World War 3 worries, supply chain gridlock, and many more global issues. In theory, it was a perfect year for holding gold as an asset. The only issue is sometimes theory does not equate to reality.
Even though gold held its value and was not down nearly as much as stocks, bonds, and other assets, we think it underperformed itself in similar years. We think gold prices could lead the way in 2023 after a year of consolidation. Even though some claim gold as a failure in 2022, we think holding gold was a major win on a relative basis. The U.S. Core Aggregate Bond ETF (AGG) is down 12% YTD, the S&P 500 is down 17.4% YTD, and Bitcoin (new gold) is down 62% YTD. When you compare those returns to gold’s YTD (down 5% (as of December 6th)), there is no comparison, maybe 2023 is when investors will realize gold is a great piece of a portfolio. We are certainly not advocating for the entirety of a portfolio to be in gold or for it to be the largest position, we just think it belongs in an investors portfolio especially going forward.