Rally Caps

Ain't got no regrets
And I ain't losin' track
Of which way I'm going
Ain't gonna double back
--Lou Gramm

We got our big market rally on the back of last weekend's G7 meeting that essentially pledged to backstop the world's financial system as we know it. Like others, I made some sales into the historic 900+ point pop in the Dow, and plan to unload most of my incremental exposure added last week into any further liftage.

While this rally may last a while--perhaps many months, I think there's a good chance that we mark new lows next year. Try as I might to invest, the playing field just doesn't appear attractive for long-term commitment.

If (big if) all this intervention gains actual traction against the deflationary headwinds, then it's difficult to see how all this will not impair the dollar and benefit gold (i.e., Jim Roger's 'Inflationary Holocaust' vision).

While I'm comfortable with my current precious metals exposure, I do plan on shifting more funds to other commodity sectors such as crude, natty gas, and agriculture. Nothing crazy or all at once, but I want to gradually increase exposure to various hard assets because chances of an extreme inflationary scenario have recently upticked in my mind.

positions in gold, crude, natural gas