Gold is flying, again, as the Fed decided to keep rates on hold. Speculation was frantic last month that there were murmurs of a possible rate hike, earlier than the expected Q4, that analysts had been quoting.

So, now we see Gold above $1300 and making headroom above the 2015 high. It’s safe to say if the price can hold above that high, then an assault on $1400 (or very least $1350) should happen over summer.

Or it may happen quicker than that.

As this article begins in Business Insider..

“Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday..”

They sure will. Gold in time of uncertainty rises, sometimes dramatically. If the Uk leaves the EU, then it should not be a surprise to see Gold instantly jump higher as money pours into a “safer” investment.

GLDWeekly

Whilst most investors are contemplating the upcoming end of the economic world, the chart of the most talked about index in the world continues to show strength up here.

Since rallying near 2500 point since the January lows, the DJIA is now consolidating above the line over the 2015 tops.

djia chart

It has even made a sneaky back test or two to be sure.

What does this mean?

It could be a bullish sign, or it could fail. But that line underneath is the key. If it hold above and begins to make new highs for the year, we could see a bit of a rally into the elections.

Food for thought.

An inventor is rarely celebrated for the life changing product he creates. More often, the trailblazer who integrates the invention into society steals the spotlight. Colonel Sanders did not invent fried chicken; Henry Ford didn’t invent the car, and Bill Gates didn’t invent the personal computer. However, each of these visionaries is inextricably linked to the products they helped to bring to mainstream America.

benBenjamin Graham was one such visionary. His investing classic, The Intelligent Investor, marked its 50th anniversary in 1999, yet the media ignored the event. Unlike the Colonel, Ford and Gates who seem to enjoy more accolades as time passes, Benjamin Graham seems to be fading into obscurity. When the 100th anniversary comes to pass in 2049, will anyone remember his lessons?

Ben Graham is widely recognized as the father of “value investing,” a term that is often confused with the practice of buying extremely cheap stocks. While Graham did focus on ridiculously inexpensive stocks, he addressed many other details of investing. In fact, the lessons in his book are so profound, they should be applied to every investment.

Although Graham was probably not the first to discuss how fear and greed influence investors, his genius was to personify the concept into a memorable lesson. He encouraged his readers to imagine the stock market as a salesman he dubbed Mr. Market. Every day Mr. Market tries to sell you something, but sometimes his offering price doesn’t fall within the limits of sanity. At times, Mr. Market offers up his stock at exceptionally cheap prices, and at others, preposterously overvalued.

Graham encouraged his students to be Intelligent Investors by ignoring Mr. Market until he offers a great stock at an unjustifiably low price. When Mr. Market presents the Intelligent Investor with an undervalued security, the Intelligent Investor should snatch it up. Then, when the stock price grows beyond the bounds of what it could possibly be worth, the Intelligent Investor should sell. Graham taught that an investor who relies on his valuations to make investment decisions will maximize his profits while others who follow the every word Mr. Market never fully realize their potential profits.

warrenGraham’s star pupil, Warren Buffett, has modified many of Graham’s concepts. Buffett no longer considers price as the primary factor in his investment decisions; he has said that he would prefer to pay a fair price for an outstanding business than purchase a mediocre business at a deep discount. Still, Buffett remains true to the lesson of Mr. Market. Interest rates have just been cut? The European debt crisis has investors worried? The American dollar is collapsing? Because of Ben Graham, Warren can sit back in his armchair and move onto the sports section. The question is, by 2049, will anyone else be doing it?

Here is a list of 5 Reasons I like ETFs.

  • Cheap – Vanguard’s FTSE All World ETF tracks over 90% of the worlds market capitalisation for a Total Expense Ratio of 0.25%.
  • Flexible -Equities, Bonds, Gilts and Commodities are all easy to get exposure to with ETFs.
  • Passive – No one selecting what investments to hold, no over trading and no under performing the market.
  • Transparent -See the replication method, rebalance frequency, dividend yield and a complete list of holding on the ETF providers website.
  • Easy – As simple as buying any other share.

Passive investing using ETFs isn’t for everyone, and no investing is truly passive anyway. ETFs are just a tool I use to help me reach my asset allocations. I actively manage a portion of my portfolio (even if the evidences suggests I will not beat the market) because I enjoy it and find it challenging. No one is judging my performance, and should I be judging myself against ‘The Market’ anyway?

1. Don’t panic if your investments are going down.

2. Don’t panic when you see other investments shooting up around you.

3. Don’t think you are missing out.

4. Don’t worry it might never happen.

5. Don’t try to chase performance.

6. Don’t over trade.

7. Don’t delude yourself.

8. Don’t bank on a company putting share holder interests first.

9. Don’t count on big dividends not being cut.

10. Don’t put too much pressure on yourself.