Year to date the growth portfolio is flat while the S&P is up 10%. Interestingly CVX is up 10% YTD along with the S&P. The Fed's easy money is inflating stock prices and many other asset classes. Recent easing Japanese Yen policy and loss of confidence in the Euro has also driven appreciation in US dollar denominated assets.
So why are precious metals the exception and not appreciating? The market prices for gold and silver are actively being manipulated down by JP Morgan among others with support from the US Fed. JP Morgan has a large short position in gold and silver. Check out Eric Sprott, Harvey Organ, and Jim Rickards for more about precious metals market manipulation.
I am currently wrestling with 3 major issues related to the investments in this portfolio:
1) Should I start selling CVX? The growth port-faux-lio is heavily weighted in CVX. CVX market value has been tracking the entire market. Money may becomes less easy which would drag down equity, and specifically CVX prices.
2) How much longer can the manipulators suppress gold and silver prices? Gold and silver market values have not changes much in the last 1.5 years. I can hang on for several more years. But if they can get away with it for 10 more years, I might throw in the towel and search for better returns in real estate.
3) Why are gold mining companies and specifically GG not valued higher? GG's current share price is only 16 times 2012 net earnings. GG has a much higher P/E than the entire precious metals mining industry because its growth prospects are much better. Is the entire industry under valued?