I have recently added to my substantial holdings of Swiss francs by adding to my CurrencyShares Swiss Franc ETF (FXF) position. And I would add to yours. A conservative move is to take a starter position today and to add to your position over the years until you reach the 10% mark (gold and currencies). The wealthier you are, the greater your position in gold and Swiss francs should be (perhaps 20%). In terms of your total portfolio, my advice to you is to deploy your financial assets 60/30/10 (fixed-income/dividend-paying blue chip stocks or funds/gold and currencies). I see no logical reason for deviation.
I calculate the investment climate on the back of a postage stamp, adding the 90-day T-Bill yield to the Dow-30 yield. I have used this basic calculation as my guide since I was in high school listening to Chuck Berry in the late ’50s. And I’m unlikely to be making much of a change in strategy in the foreseeable future. Today, my payday indicator is at the lowest reading since I began making the calculation. Investors, including Dick Young, are not being paid well. It is just that simple. In this environment, I want to adopt as defensive a strategy as makes prudent sense. I am not speculating on the future. I am not advising you on where the Dow will be next year or the following year, as I have absolutely no idea and spend zero time pondering the issue. That would be as absurd as finding Elton John and James Carville at a Rush Limbaugh wedding. I invest my own money for cash flow and to get paid. This most often means cold cash in the form of dividends and interest.















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