I agree about TIPS – government inflation data is crap, so your TIPS are modest, at best, for inflation protection.
Is gold already in a bubble? I don’t think so, but I agree that its flucuations are not for everyone. I bought $5,000 worth of bullion at $425 an ounce back in 2004 – haven’t touched it since; except for on occasionl mining stock here or there. Yeah, you here some gold ads on the radio, but I don’t think gold is in a bubble until it is a topic at cocktail parties – I don’t see the mainstream kinfe catchers jumping on gold right now. I think calling a gold top right now is like calling a real estate top in 2003/2004 (depending on the area). You would’ve missed the two best years.
Been thinking about jumping on a couple of silver/gold miners if the overall stockmarket pulls back a little in the next few weeks. Maybe jump in on some miners prior to Ben’s next rate cut. Play it short term.
Stocks will probably head lower from here on out; however, the public will see sporadic gains and think the market is remaing healthy. Long term, I think you’ll see a gradual decline in equities.
I’m looking into a mixed currency index for inflation protection as well. Silver/gold; other currencies (euro, yen, and other Scandinavian currencies); and pure commodities plays (sugar, coffe, cotton) if you can get into it – tough for the average investor though.
