The world economy will experience a brutal slowdown. Deflationary forces are going to strengthen and commodities in general will decline. You can buy oil to hedge a decline in base metals. Gold started a cyclical correction within a secular bull market last summer. The first wave of selling is ending now. Gold has to be bought some time this year, probably in the second half, below $1,600. Then the monetary authorities will load their guns again and print more money, which will make investors buy more gold. The gold market is so tiny that when people want to shift just a small piece of their wealth into gold, the price flies to new highs.
Annualized Returns: 2002-11
|Felix Zulauf -||25.1%|
We should mention that these figures are somewhat crude, as they only reflect price appreciation and assume an equal allocation across the picks with a fixed one-year holding period. They do not include picks from the mid-year Roundtables.
Regardless, the returns are mighty impressive. To put the percentages in context, if you had spread $1000 across Felix Zulauf’s picks in 2002 and then rolled into his new recommendations each subsequent year, you would now have $9423. That is almost 10x the amount you would have if you did the same with the S&P 500 ($982)!