Friday, April 4, 2008

short-term oil, long-term gold

Today my limit order kicked in during the small gain of AMZN, and I managed to sell all my vested shares. I figure the unvested shares are enough long-term investment for the business that I worked in.

 

My regular portefolio is now 50% in oil and 50% in gold. My rational is the following:

I am pretty sure there will be short term gain in oil demand, simply because summer is coming. Inflation would kick in sooner or later, when the next round of interest reduction arrives.

 

I would have done the same distribution for my 401(k), if I had the choice. But right now, I can ONLY leave them in mixture of bond and mutual fund of international markets. That's why I consider 401(k) as a sucker's game. You can't even control how to hedge your own retirement saving, and have it watch it eaten away by inflation. That's just the biggest scam the financial industry and US government have invented.

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