5 votes

An Inside Look at Ron Paul's Portfolio

Ron Paul is a lot like licorice; not everyone likes him, but the ones who do really like him.

The former Texas congressman built his reputation and loyal following by taking strong positions on a number of controversial issues.

The first is his desire to audit and eliminate the Federal Reserve. Paul is a free-market capitalist and doesn't believe a centrally controlled, non-elected entity should have the ability to dictate interest rates and change the trajectory of the economy.

Paul has also expressed deep concerns about the U.S. dollar, which is not backed by any physical asset, and has been steadily devaluing against other currencies since 2001 under growing domestic trade deficits.

Finally, Paul is also worried about the possibility of massive inflation. Although the U.S. Bureau of Labor statistics' Consumer Price Index has yet to show any serious signals of inflation, with central banks around the world fully committed to monetary stimulation, the devaluation of fiat currency is a very real consideration for many investors.

But unlike many politicians simply tickling populist fancy, after taking a look at Paul's portfolio, it's obvious the man puts his money where his mouth is.

The typical congressional portfolio might have 10% in cash, 10% in bonds, 20% in real estate and 60% in stocks or stock funds, according to the Wall Street Journal.

But Paul has taken a radically different approach.

His 21% allocation to real estate looks pretty normal. So does his 14% allocation in cash. But where he parts ways with his congressional brethren is the remaining 64% of his portfolio, which is invested in gold and silver mining stocks.

Continue:
http://www.streetauthority.com/energy-commodities/revealed-i...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

No technological advances in gold mining = bad stock performance

According to this site, No technological advances in gold mining = bad industrial output, and bad stock performance.

http://www.mineweb.com/mineweb/content/en/mineweb-whats-new?...

Breakthroughs for gold mining like those seen in oil and gas need to be forthcoming in order to make the industry more productive.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

No technological advances in gold mining = bad stock performance

According to this site, No technological advances in gold mining = bad industrial output, and bad stock performance.

http://www.mineweb.com/mineweb/content/en/mineweb-whats-new?...

Breakthroughs for gold mining like those seen in oil and gas need to be forthcoming in order to make the industry more productive.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

My 401(k) is heavy on mining stocks, and is tanking HARD!

My 401(k) is heavy on mining stocks, and is tanking HARD! Last two years have been especially ferocious. One would think, with high demand for gold and new tech, there would be interest in these stocks. But apparently not.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

TwelveOhOne's picture

My 401k is in MY hands now

Sure, I'll pay a ~40% penalty, but at least they can't take it like they can the government pensions they just announced they're taking, last week. (Sorry that they meant "borrowing from"; that's not how I've witnessed it in the past.)

The ~40% is 10% for withdrawing, and then it'll add to my tax burden for 2012. But I sleep better at night, because "safe as money in the bank" is an expression started by the bankers.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

Bought some precious metals/mining on 2 dips for my IRA last yr

...made a little over 9%. Currently off by 0.53% (x'ing-fingers). Waiting for more dips... :-)

Diversification is key. You

Diversification is key. You cannot expect to escape from getting hammered by the ups and downs of markets and commodities trading if you are not diversified. Even the biggest 'freedom' oriented, fiat currency hating investor needs to spread the risk. Look into the Harry Browne Permanent Portfolio if nothing else. If you invest, you must do your homework and realize no investment is 100% secure.

Thanks for the advice but I'm not worried. Its not my money!

Thanks for the advice but I'm really not worried. I was just mentioning my experience with mining stock in reaction to the article. Anyway, its not my money, but a fund set up by my workplace without my participation. It grew very little over 10 years in a treasuries fund, but when we changed over to a new mutual fund manager I got a chance to play with it and moved it over to mining stocks and "emerging markets", both categorized as "high-risk" by the firm. Up 14%, down 17%. Whatever. Its been interesting looking at the market and seeing so much volatility in a place that should be stable considering the demand for metals for tech and investment.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

The difference for me has

The difference for me has been my assumption that corporatism and corrupt cronyism isn't going anywhere. I've been mostly correct and my investments have reflected this. Invest like a realist and you will be rewarded, invest like an idealist and you will go broke.

So you're heavy on Raytheon, Halliburton, GE, and UT?

Gotcha. So you're heavy on Raytheon, Halliburton, GE, and UT? A couple of years ago some analysts began weighing funds based on their holdings of government contractors, especially at the height of the Stimulus Package disbursements. Firms that got a lot of $ got high rankings. Presumably that included Solyndra.

I'm not much of an investor. My grandmother told me to save, not to invest. Of course, she told me 5% was "just fine" at a time when 5% return was possible.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

Yes. A number of those.

Yes. A number of those. Betting against the house doesn't work in Vegas, nor does it work in an unfair corporatist political system like ours.

Hope this trend reverses soon

That is surprising.

Thanks for a bump.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15