From The Gold Report:
Debt, not the fiscal cliff, is what concerns Jason Hamlin, publisher of the Gold Stock Bull newsletter, and if his prediction of a split in the E.U. comes to pass, it will bolster the case for gold equities. In this Gold Report interview, Hamlin shares his preference for royalty streamers and prospect generators in the gold space and explains his attraction to graphite.
TGR: Jason, you recently told your Gold Stock Bull readers that you had sold some equities. What were your reasons for selling?
Jason Hamlin: At the time, we were nearly fully allocated and decided to move to a position of roughly 20% cash. Even though this is a high seasonal period for precious metals, we sold a couple of underperformers to take advantage of any potential year-end selloff driven by concerns about the fiscal cliff and its impact on economic growth. There are also year-end opportunities for tax-loss selling and we want to have some dry powder for bargains that may materialize over the next few months in quality resource stocks.
TGR: Do you believe investors should reduce risk and take a more conservative approach until we know what are the repercussions of the fiscal cliff?
JH: I do not. It is sensible to always have some cash available for a selloff, but I do not view the fiscal cliff as some Armageddon-type event like other analysts. I think the politicians will come to a resolution before things become too explosive, but we should never discount their ineptitude.
For me, the true issue here is debt, not the fiscal cliff. Debt is the root cause of nearly all of our economic and social issues...
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