In early January 2014 I opined that,
“It might seem to my readers counter-intuitive to have a position in 10-year Treasuries, and at the same time to believe that commodity prices could rebound.”
However, since the beginning of the year, both long-term Treasuries and most commodities rebounded strongly. Long-term Treasuries are up 5%, gold is up 12%, and the Junior Gold Mining Index (GDXJ) is up 52% from the late December 2013 low.
Also, as I explained in previous reports, I would reduce my US equities positions altogether because valuations (and profit margins) are stretched.
I do own some long-term Treasuries because I believe that owning them is an inexpensive and relatively low risk strategy for shorting the stock market.