 |
| Tulsi Gabbard, cryptocurrency plunger |
Well, there is some good news here for the country, but not so much good news for Congresswoman Tulsi Gabbard on a personal investment level.
Gabbard is one of the few anti-war members in the House. Heroically, she prefers negotiations over sanctions when it comes to North Korea, Iran and Russia. But the interesting development this past
week is that she just filed her financial disclosure statement for 2017.
The good news is the statement suggests that she doesn't have much faith in the Federal Reserve.
Her modest portfolio, excluding a rental unit, is worth no more than $120,000. But get this, up to $30,000 of that portfolio is in cryptocurrencies. It is a crazy amount of cryptocurrencies to have in her portfolio given the small size of her investment assets. And things went bad almost right away with the purchases.
In late December, she bought somewhere between $1,000 and $15,000 of the cryptocurrency ethereum and somewhere between $1,000 and $15,000 of the cryptocurrency litecoin.
She bought both e-currencies very close to their tops. On December 12, 2017, the day that her report indicates she bought ethereum, it was trading around $558 per unit. She also purchased on that day litecoin which was then trading around $276.
Today, ethereum is trading around $316 and litecoin $60. Ouch.
It gets worse. It appears she sold out of a position in a gold mutual fund to buy the cryptocurrencies.
Two days before her e-currency purchases, she sold her complete position in Gold and Precious Metals Fund, which she listed as a sale of somewhere between $1,000 and $15,000.
Gold and gold mutual funds have been down since then but the decline has been nowhere near the decline in the cryptocurrencies. Further, I expect a strong rebound in gold once the developing acceleration in price inflation becomes obvious.
It's anybody's guess what the cryptocurrencies will do.
Tulsi, I would liquidate the cryptocurrency positions and use those funds to plow into the VanEck Vectors Junior Gold Miners ETF (Symbol: GDXJ). If gold spikes the way I expect it to, GDXJ is going to rocket in price and you will be getting in at a trading range bottom instead of a speculative top.
No comments:
Post a Comment