Finally, we remain upon the sidelines, watching gold,
having exited our bullish positions two weeks ago. We
hear that the major gold ETF, GLD, has seen its stock of
gold fall quite sharply in the course of the past two
weeks, suggesting that longer term holders of gold are
selling it and replacing it with positions in global equities.
We cannot confirm that, of course, and it is conjecture on
our part, but we are not alone in that assessment. If so,
gold's future looks rather bleak and we are glad to be on
the sidelines. Indeed, we'd not argue with those using
today's strength to get short of gold. We'll not make that
an official recommendation, but we will not object to
those prone to selling gold short to do so. For us, that is a
very, very bearish view of gold after several years of
remaining steadfastly bullish.