BakshisMouse
Rookie
- Jun 28, 2011
- 702
- 70
- 0
- Banned
- #1
Yes, about 21% of Rep. Pauls holdings are in real estate and roughly 14% in cash. But he owns no bonds or bond funds and has only 0.1% in stock funds. Furthermore, the stock funds that Rep. Paul does own are all short, or make bets against, U.S. stocks. One is a double inverse fund that, on a daily basis, goes up twice as much as its stock benchmark goes down.
The remainder of Rep. Pauls portfolio fully 64% of his assets is entirely in gold and silver mining stocks.
....
There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Pauls portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, this portfolio is at great risk because of its lack of bonds and high exposure to gold.
How Ron Paul Invests - Total Return - WSJ
I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.
I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.