I know that you get a lot of content from me on a weekly basis, and I hope you find it useful. But I also know that what you might be most interested in is where I'm putting my own personal money.
For the record, I still own a significant portion of my cash savings in physical gold and silver.
But I recently made some serious changes to my personal 401(k) and though these changes have little to do with commodities, I thought you might garner some insight.
I do believe in total transparency – not because of some backwards government regulation or dictate, but because I'm convinced that total transparency is the simplest and easiest way to do good by you as a reader – which in turn should make you more likely to stick around.
So my motives are to keep your best interests in mind, which coincidentally also serve my selfish purpose of having you as a subscriber.
But back to my 401(k) changes…
As I've said on occasion, I own stocks. I'm not an atheist when it comes to the likelihood of long-term prosperity and growth. Putting some of my money in an index mutual fund doesn't mean I've lost faith in the commodity bull market – especially when some portion of that money is matched by my employer.
And I recently put as much as 10% of salary into my 401(k) here at Wyatt Research. But not anymore. Yesterday I instructed my company's HR representative to drastically lower 401(k) contribution.
Why? Well, because while I believe stocks were and still are likely to experience a massive selloff, for the time being, they're only getting more expensive. So my 10% buys less and less of the broad market. And I don't like buying stocks when they're more expensive.
So I cut my 401(k) contribution to 1% of my salary.
I'll bank the other 9%, putting some of it into more gold and silver – and I'll gladly buy stocks when they're cheaper.
But today, stocks are only getting more and more expensive every day – so I'd rather not keep buying them.
I realize my logic might seem backwards. Most investors only want to buy stocks when they get more and more expensive – and sell them when they get cheaper.
For me, the more expensive they get, the less interested I am.
When stocks take an inevitable tumble, I'll change my 401(k) again. And I'll let you know when I do.
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