Well, the year is already coming to an end. The year has seen some tremendous moves as the stock market has continued to ignore fundamentals and rally higher. It will be interesting to note how the year will wrap up as tax-loss selling and Santa Claus rally come into play.
Not much going on in the broad markets that seems interesting enough as volatility remains depressed. The flattening yield curve is something that investors have to keep an eye on and watch and understand what its signaling.
One common theme that stands out is from the currency markets — there are lots of indications that the US$ has topped and is now entering or already in early stages of a bear market. This is one of the themes that I have been positioning my portfolio for. While I expected this to get reflected in the precious metals market, the gold and silver prices havent moved much so far. Gold is up approx 12% for the year in US$ terms and silver is up only about 3% in US%. Interestingly, the base metals have had a fantastic year so far, thanks to the demand from China. So, it appears that precious metals are lagging the base metals in this cycle.
Outlook for December 2017
I have been waiting for the broad markets to normalize and in the dearth of attractive valuations, have started looking outside the mainstream of stocks and bonds for investing. While I continue to put a small amount of money into index funds on a monthly basis, I am more specifically looking at alternative investments. Over the course of last year, I have deployed a lot of capital into the commodity sector and I have surpassed my original goal for this sector, so I am now going to sit back and wait for the market to do what it does.
Our current portfolio looks like this:
As it stands, our portfolio diversification is as shown below.
What is your outlook for December 2017? What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below.
Looking for other investment ideas? Be sure to check out the Top 2017 Investment Picks from the blogging community.
Disclosure: Our full list of holdings is available here.