The market was kind to us during July. Our company account, which invests and trades natural resource stocks and ETFs, was up 9.10%, which brought the year-to-date return to 62.15%. It was a balanced advance in energy stocks and some of the precious metals miners. We were relatively inactive during July. We have trimmed some of our positions towards the end of the month to raise cash for other opportunities in the near future. Also, we believe that the stock market in general is very overbought and overvalued; therefore, we don’t want to be overexposed (if the market corrects, it can take some of our positions down with it). We are currently 70% invested and are waiting to deploy cash in case of weakness.
We believe that Gold is about to finish the trading range, which has been in place for nearly four months. The resolution should be to the upside. Meanwhile, the energy stocks remain volatile, which allows us to accumulate some of our favorite stocks during short-term oversold conditions.
