I'm a trader, so I have to be flexible with my risk-management approach, to hedge using different tactics and tools according to the trade in front of me.
I'm not the only one with risk management on my mind right now. Thanks to the Brexit and concerns about the European banking sector, it seems anyone with two nickels to rub together (and the instinct to protect them) is making a beeline for safety: Gold is at 28-month highs and racing toward $1,400.
But really savvy investors are making protective plays they can profit on with these shares.
Get the world's biggest, most successful investors together for a cocktail party, and of course you'll have a room packed with power, money, big ideas, and, for better or worse, uncommon decisiveness.
But... because of the huge variety of investing styles - value, macro, momentum, growth, you name it - among the assembled company, you'll also have friction. The world's top investing minds just don't agree on much very often, if ever.
But right now, more and more, these giants are sounding a common note. And they're achieving consensus on one of the most contentious assets on Earth: gold.
The consensus is: Buy early, buy often, and buy in massive quantities.
With the gold shares I'm about to show you, we'll be getting rich in some very good company...
The five-year cyclical bear market gold investors endured is well and truly over. In fact, gold and gold stocks have been, hands down, the hottest investing segments of 2016.
In January, gold stocks marked what now looks like the end of their mid-secular bull market correction, and, in less than three short months, the flagship NYSE Arca Gold Bugs Index (HUI) roared higher to double in value.
But... after five long years of declining and depressed gold prices, skeptical investors largely sat out the bull run.
Don't worry - I'm going to show you why gold stocks remain outright bargains right now, so you'll get the chance to load up on these shares before the next double.
For a long time, I've been cautioning investors that destructive insanity like negative-interest-rate policies (NIRP) would have dire unintended consequences.
Sure enough, by now more than 20 countries around the world have imposed NIRP in some form or another, and it's clear those warnings were right on the money.
Such policies haven't worked to stimulate growth, and in many cases have spurred the exact opposite reaction. But central planners and central bankers are still moving full-steam ahead with NIRP - like in Japan, which I'll talk about shortly.
Even as the system is breaking down, the International Monetary Fund insists negative rates "help deliver additional monetary stimulus and easier financial conditions."
Don't buy it; nothing could be further from the truth. The truth is these bankers are engaged in wholesale capital destruction.
Is there gold under the streets of New York? Yes, actually -- billions of dollars' worth.
The New York Fed holds the gold reserves of other countries and international agencies, free of charge.
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The gold price per ounce is climbing this morning (Tuesday) as investors respond to news of a deadly terrorist attack in Brussels, Belgium.
Gold prices were trading up $9.40, or 0.76%, at $1,253.50 an ounce in midmorning trading amid a flight to safety.
The market-leading FANG stocks - Facebook, Amazon.com, Netflix, and the former Google, now Alphabet - haven't had a great 2016, with returns in the neighborhood of -15% to just under 5% for the year.
Don't get me wrong - they're still good "holds" for investors wise enough to take the long view and accumulate big, steady gains over a period of years.
Those anemic gains aren't surprising, given that we're all but "officially" in the depths of a bear market.
But... like the old adage goes, "there's always a bull market somewhere," and I believe that's especially true of the basket of stocks I'm about to show you. As uncertainty and volatility rule the markets, these shares have already delivered bona fide breakout gains that most investors would kill for right now.
But you haven't missed out; there's a new technology just hitting its stride right now that could multiply these players' profits exponentially.
And the best part is they're all still available at real bargain prices.
They won't stay that way, though...
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The price of gold is climbing more than 1% today, after more additional global monetary easing policies were announced. And we see the price of gold climbing much higher from here in 2016.
First, here's how gold prices have trended this week...
This is an exciting time for gold.
After another annual loss in 2015, its fourth year in a row, the precious metal has plotted a new course, one that has ferried it to the lead position among all other major asset classes in 2016.
Here's why investing in gold is one of the best moves to make now...
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Gold prices today keep climbing, up 8% in the past week.
Spot gold traded around $1,238.50 last week.
So can gold prices in 2016 continue this rise? Take a look at what we see ahead for gold...
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Gold prices surged to a 12-month high above $1,240.00 an ounce Thursday as investors around the globe piled into safe-haven assets.
Spot gold prices were sharply higher in early trading, up as much as $45.50, or 3.8%, at $1,242.26 an ounce.
Here's exactly what is driving gold prices higher today and what to expect for the rest of 2016...
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The price of gold today is climbing 1.5%, or $17, to $1,190 this morning, continuing a strong run for the precious metal. Gold prices have now climbed roughly 12% in 2016 and should continue to climb even higher...
The price of gold today is climbing as stocks continue to be extremely volatile.
But there have also been some significant developments on a macroeconomic basis that have driven gold higher in the past week.
Here's exactly what has been driving the price of gold in February...
Stocks actually rose last week, although you'd be hard-pressed to find an investor or hedge fund manager who is feeling good about things right now.
But the Dow Jones Industrial Average did in fact gain 105 points or 0.7% to close at 16,093.53 while the S&P 500 rose by 1.4% or 27 points to 1906.90. The Nasdaq Composite Index, home of the FANGS, added 2.3% to close at 4591.18. But as the title of the novel goes, it's "been down so long it looks like up to me."
China really loves gold - and it understands gold better than any Western nation.
It's no secret that the People's Bank of China has been buying the yellow metal for years, shoring up its reserves. And the country's central bank may have been buying for decades before it became at least a little more transparent.
Recently, however, the Chinese central bank has been among the world's most aggressive buyers of gold.
In fact, there are some clues that point to the fact that their actual gold holdings are a multiple of what's actually being reported in the financial press, which in turn points to a shocking long-term strategy: a move to link or back the yuan with gold.
There's no doubt 2015 was one of the most volatile years in recent history.
But here's the thing... I believe 2016 could be even rougher.
We haven't even seen the sell-off I'm predicting yet; it's likely to make the plunge we saw on Aug. 24, 2015, look like a kiddie ride.
Just as there's nothing solid or healthy underpinning the stock market gains we're seeing now, there will be nothing to catch investors who aren't prepared to trade this volatility - just a long, deep drop.
There's no bottom in sight, but the good news is there's one easy way to trade just about everything the market is likely to throw at you this year.
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