Eric Parnell Positions For 2014: The Payoff In Precious Metals Has Enormous Potential

The following article was published on Seeking Alpha as part of their annual Portfolio Positioning series.

This is the ninth piece in Seeking Alpha’s Positioning for 2014 series. This year we have once again asked experts on a range of different asset classes and investing strategies to offer their vision for the coming year and beyond. As always, the focus is on an overall approach to portfolio construction.

Eric B. Parnell, CFA is the Founder & Director of Gerring Capital Partners, a Registered Investment Advisor based in Chester County, Pennsylvania and serving clients nationwide. He founded his firm in 2005 to provide high quality, personalized investment solutions for clients at a low cost. Eric is a regular contributor to Seeking Alpha and is widely seen in the media on radio and television. In addition to his work with Gerring Capital Partners, Eric serves as a professor in the Economics and Finance department at West Chester University teaching courses in Finance, Economics and Statistics.

Seeking Alpha’s Abby Carmel and Jonathan Liss recently spoke with Eric about his outlook for precious metals in 2014, and how he would advise investors to position portfolios accordingly. [Read more...]

Stocks & QE: All Things Must Pass

Slide1The shutdown and debt ceiling debacle in Washington is finally over. And despite all of the talk about the tensions in financial markets over the political wrangling these last few weeks, the stock market was largely unmoved through it all. In fact, it emerges in the aftermath a mere hairsbreadth away from fresh all-time highs. The performance and resilience of the stock market these last few years has been undoubtedly remarkable, and perhaps it will persist into the future. But before jumping on board for the next potential rally higher, it is prudent to consider after so much time exactly what has been driving the stock market to this point and how much longer it is likely to continue. For the one thing we know for certain is that eventually all things must pass including the current bull market in stocks. And one certainly does not wish to be caught unaware when the love is up and the stock market has left us with no warning.

Please click on the link to read more of my article on Seeking Alpha.

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

Silver: Responded Well On A Difficult Day

Silver was receiving an absolute drubbing at the start of the trading day.  At one point during the morning hours, the white metal had fallen as much as -3.21%.  And while the exact reasons for the decline are subject to debate – perhaps it was the Greece debt deal, or then again it might have been a forced liquidation given the trading volume – the good news coming out of today was how well silver responded in the face of this initial pressure.

Image

Silver briefly challenged its newly established support at its 50-day moving average (the blue line on the chart) before rebounding sharply higher.  By the early afternoon, it had recovered much of its losses and managed to hold its ground for the remainder of the trading day.  And at the end of the trading day, silver closed down only -0.76% to remain within close striking distance of its recent highs.

Overall, silver has been performing well since mid August when the winds of monetary stimulus from the U.S. Federal Reserve began whipping up in earnest.  And as the flow of liquidity from the Fed under QE3 steadily increases in the coming weeks and months, we may find that silver has much further to run to the upside before it is all said and done.

Disclosure:  I am long silver via the Central Fund of Canada (CEF), which has a 55% allocation to gold and a 45% allocation to silver, as part of a blended precious metals portfolio allocation.

This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.

 

Follow

Get every new post delivered to your Inbox.

Join 5,582 other followers