Weekly Portfolio Update 7/13/2020

The Millennial Gold principal portfolio saw a gain of 6.1% this past week bring the total gain since inception to 9.6%. All investments but one (DLTR) saw modest gains this past week and will likely continue to see gains this upcoming week due to positive expectations about vaccinnes for COVID.

However, we are still concerned about the structural issues of the economy namely unemployment and debt and hence maintain the following outlooks:

  • A neutral to bearish outlook on the markets in the medium term 3-6 month period
  • An uncertain short term(1-3 month) outlook for gold
  • A strong positive long term outlook for gold (>6months)

Despite most of our investments being tied to the price of gold, some of our equity exposure is still tied to capital market flows in and out of the S&P 500. These investments, mainly FSAGX (large cap gold equities) and SPY Calls (options) will be significantly affected by capital outflows should they occur in the medium term.

With this in mind, we will be taking profits and reducing exposure to large cap mining equities and the SPY January 2021 calls to redirect capital toward gold and junior mining companies (less tied to passive fund flows)

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