ArabianMoney investment newsletter outperforms most professional financial advisers in 2011
Posted on 14 December 2011 with 3 comments from readers
Most professional financial advisers will shortly be sitting down with their clients to explain why they lost money in 2011. It has been a tough year for all investors with high inflation and big falls in most global stock markets and even the mighty Wall Street struggling to stay in positive territory.
But there will be no such bad news for readers of the ArabianMoney investment newsletter, the subscription-only newsletter promoted by this website. Our controversial asset allocation of a year ago has not only maintained its value but advanced against the trend in the year.
Gold, silver and dollars
The next issue of the newsletter will outline this performance in more detail (subscribe here). But broadly our strategy relied on an overweighting of precious metals. Gold was up 50 per cent and silver doubled the past 12 months, although they are well off these all-time highs now.
This performance is all the more remarkable because the Wall Street Crash that we have been anticipating did not actually happen all year. That left our small position in bear market ETFs sharply in the red but it also resulted in a cautious cash allocation that avoided slumps in other popular asset clsses such as emerging market equities or even gold stocks.
Where we did recommend buying in emerging markets, principally selected blue-chips in the UAE, the stock prices were already so low that the downside has been very limited.
2012 tips
The next big question is what to do for 2012? That will be the focus of the next edition of ArabianMoney and we can only provide the strategy and the not actionable investment ideas for readers of this website.
Our first investment idea would naturally be to sign up for the ArabianMoney investment newsletter. It is only $99 for the year, and you should quickly make that back from our actionable investment ideas.
We continue to be very concerned about the mushrooming eurozone crisis and as readers of this website know expect some kind of blow up very soon. All the forces are in place to make this happen and there is nothing to suggest that this time will be different.
However, we are interested in investing in long-term trends that will come right whatever happens or does not happen. That served us well in 2011 and will most probably do so in 2012.
3 Comments posted by readers:
Gold almost doubled in the past 12 months?? “almost” is widely used in this region’s sales patter, but really means no where near!
Ed Note: OK fair point we have adjusted that, and the gold price is slamming us for hubris today!
Looking forward to reading future posts on the gold market and what to expect. We also have some information over at http://www.cashforgolddeals.co.uk
An excellent example of Murphy’s law. As soon as you pat yourself on the back, the market bites your hand off!
Gold price 14-Dec-2010 = $1403.60. Current price $1572.50. Increase 12%
Silver price 14-Dec-2010 = $29.16. Current price $28.72. Decrease 2%.
Ed Note: Yes hubris indeed, we are all humbled by the markets.