January 23, 2026: We recommend the following changes…
Gold has continued to experience rapid growth through the start of 2026, with the price of gold rising over $600 to $4980. The Gold Miners position held in the Model Fund Portfolio (GDX) has increased +215% since the start of last year! While technicals indicate that gold may have the potential to climb higher, history shows that riding a parabolic curve can be dangerous because the fall is often faster than the trip up. As a result, we recommend taking some profits off the table.
- Decrease the Van Eck Vectors Gold Miners ETF (Symbol: GDX) to 4%. [Note: Due to recent gains, actual GDX allocation had increased well above 5% in the Portfolio]. We are taking advantage of the opportunity to secure gains while still maintaining a position in this defensive hedge.
Following this change, the Model Fund Portfolio has a net invested equity allocation of 54%. This is comprised of 59% long positions, 5% in an inverse index ETF, 5% in an intermediate Treasury ETF, and 31% cash held in short-term Treasurys or a money market fund.