Q3 Update: You’re Up 125% On This Long Play

Michael Lewitt - Sure Money Investor - What’s going up, what’s going down, and how to profit now

While reading through the survey responses many of you have sent in, I’ve been happy to hear how many of you have made money on our “big shorts” this year, as well as on our metals plays. That reminded me: it’s time for a quick check-in on our recommendations from the beginning of the year.

Interestingly, my longs are actually doing better than my shorts right now! (And you thought I was a permabear.)

In fact, two of our long plays are up 124% and 125% respectively since December 2015.

If you’ve been following along for awhile, you’ll know right away which ones those are. Congratulations if you own them. Drop a line in the comments to let us know how much you made.

By the way, a couple of our favorite short plays have now dipped 43% and 49%.

Here’s the full rundown…

Here’s How We’re Doing

Both the U.S. and global economies are suffocating under the crushing weight of debt. The retarding effects of debt are further exacerbated by the growing regulatory burdens placed on businesses in the U.S. and Europe by voraciously expanding governments. Sluggish growth will continue until radical policy changes arrive or are forced on the system by another crisis (which hopefully won’t be squandered like the last one).

I remain deeply skeptical of the post-Brexit rally because it flies in the face of fundamentals. I still expect the S&P 500 to drop sharply by the end of the year and in 2017 and think it is dangerous to be heavily exposed to stocks in the current environment. Like much (but not all) of the market’s post-crisis rise, the current rally is fueled by blind faith in central bankers’ ability to prop up over-indebted and over-regulated economies around the world.

This means, naturally, that our shorts will continue to go down, and our longs (anchored by gold, which serves as Super Crash insurance) will continue to go up.

I’ve discussed all these recommendations in detail in earlier updates , so I will only observe here that our gold miners continue to outperform the market by leaps and bounds. GLDX and GDXJ owners should be very happy. Buy gold and save yourselves.

Note: Thanks to the sharp-eyed reader who pointed out the June stock split for SH. The adjusted figures are below.

And here are our shorts. AMZN and FB still stubbornly refuse to drop, but I hold fast to my conviction that they are overvalued and eventually, their sins will find them out. However, the crumbling DB and the faddish FIT are already receiving their just deserts.

The best is yet to come, and babe, won’t it be fine.

Sincerely,

Michael

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