Faithful readers got used to getting a summary of the Saturday WSJ articles in the Financial Nuggets thread. Some have expressed their disappointment that the Nuggets franchise is all but dead. But one overarching theme we kept hearing was the need to renew the Saturday summary, preferably as a stand - alone franchise. We are here to serve. And what better time for a spin - off than the market at all time highs?
Yes , astute reader, you guessed correctly. Bowing to the wishes of our readership, we have spun off the Saturday review from the immensely popular and equally mysterious (to some) Financial Nuggets thread.
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Those who are familiar with the column Cramer vs Cramer will especially relate to the theme of this week - Hulbert vs Hulbert
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In last Sat WSJ Mark Hulbert listed several advisors that advocate 60/40 allocation in stocks bonds. Mark stated per these advisors, you get most of the returns at much less risk.
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In today's WSJ mr. Hulbert lists top market timers who say mkt still has room to run. They recommend 83 pct of assets in stock.
So which Mr. Hulbert should one listen to.
We hope you have enjoyed our riveting first edition of Saturday Summary.
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The Hulbert vs Hulbert Challenge appears to be at least as intriguing as the English Challenge. This week Mr. H was bearish. Stating the peak in merger activity signals a market top. What is it they say about the clock being right twice a day.
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A column by Walter Updegrave stressed importance of low cost funds. Thank you Mr. Updergrave. Sound advice. While our reader is ahead of the curve, a gentle reminder every once in a while helps. Take note, dear reader.
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These days inversion in the drug sector is the rage. Noted.
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For those that r more inversionally inclinced, here r some hints.
Pfizer/Astrazeneca
AbbVie/Shire
Medtronic/Covidean.
Ok the last one is medical device. Not pharma. Good enough for government work.
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Speaking of The English Challenge, the winner has been announced. Please congratulate the winner, dear reader.
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Mr. Hulbert is the only news to report this Saturday. His digest reviews financial newsletters. Since 1980, of the 36 newsletters only 12 survived. (The rest sucked).
Only 3 have beaten the market in that 34 years. One was a value investing. One was Valueline which favors growth stocks and drops them when momentum reverses. The 3rd was selection of no load funds that use this growth stragegy.
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Mr. Hulbert's conclusion? This one is a shocker. Please grab a cold one and be seated. A few deep breaths and Oms are also recommended.
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He opines - this shows if you have a consistent strategy - you can beat market. Let us recap. Only 8% of the 36 newsletters beat the market. Of these one had value strategy. Two had growth with momentum. Is this sufficient data to make such a conclusion?
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The World Cup has been more gripping than usual. Hence we apologize for the delay in our Saturday Summary column. Please bear with us.
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#DearReader](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=DearReader)
Thanks for ur patience. Today we begin with Hulbert vs Hulbert. The piece was abt gold prices. According to an expert, the ratio of gold price in $/ounce and the CPI is a good barometer of valuation.
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The average ratio is 3.6. Now it's at 5.6. So fair value 800. Current price 1320.
So far so good.
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In other words, as inflation picks up, gold prices expected to go up.
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As the #DearReader](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=DearReader) knows, as inflation increases, so do interest rates and bond yields. But the same expert (or was it a different one - can’t keep track) states gold expected to go down near term while interest rates expected to go up. The expert also states gold may eventually reach the 1929 intra day high it set 3 years ago.
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Calm down #DearReader](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=DearReader) . Have some thanda lassi. Or is it thandi?
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So why would gold go down shirt term if interest rates go up? The expert was "confident" about this because this is how gold has behaved in the last 10 years. Price went up as interest rates went down and vice versa.
Here we call it the classic extrapolation approach. How was that thanda (I) lassi?