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SELLING U.S. AND CANADA AND CONTINUING TO FAVOR OIL AND GOLD

SELLING U.S. AND CANADA AND CONTINUING TO FAVOR OIL AND GOLD

This week’s letter is short. As we have mentioned in the past we believe that oil will go to $150 per barrel this year and we believe that this will be  promulgated by a possible change of regime in Saudi Arabia  and other  oil-producing states in the Middle East and Latin America.

Accordingly, we are taking profits and closing our buy  recommendation on the U.S. and Canadian markets at this time.  We continue to recommend Japan and Australia  because we do not want to sell Japan during the earthquake aftermath; we will wait for a bounce in the stock markets in this region.

We continue to be very bullish on gold and oil and we believe that holding these two assets in commodity form or in  the shares of fast-growing or high-yielding gold or oil producers is the best approach. We believe that gold will exceed $1600/ ounce in the near future and will move higher over the long-term.  Caveat: Be careful to avoid oil producers who have a large proportion of their production from the Middle East.

Comex Gold


Nymex Crude Oil

 

 

Investment

Date Recommended

Appreciation/Depreciation in U.S. Dollars

Commodities


 

Gold

6/25/2002

336.8%

Oil

2/11/2009

179.9%




Currencies

Singapore Dollar

9/13/2010


5.4%

Thai Baht

9/13/2010

6.5%

Canadian Dollar

9/13/2010

5.6%

Swiss Franc

9/13/2010

8.4%

Brazilian Real

9/13/2010

2.7%

Chinese Yuan

9/13/2010

2.7%

Australian Dollar

9/13/2010

8.3%

 

Countries



U.S. (Sold)

9/09/2010

18.1%

Colombia (half of our original position)

9/13/2010

-0.6%

Canada (Sold)

12/16/2010

7.9%

Australia

02/15/2011

-4.0%

Japan

02/15/2011

-4.6%


Please note that we are selling Canada and the U.S. and closing our recommendations on these two countries this week on our recommended list.

Please click the link below to see our current and closed recommendations:

03/11/2011 Current and Closed Recommendations