Client Communiqu: May 28, 2009.

Investment environment and your savings

A o!e"ul o#servation: $e may ave averted a %atastro!e, #ut o& do &e get a real
re%overy'
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)e last t&o years, investors ave #een &itness to dramati%, and "or many, un"oreseen and
undesira#le e%onomi% events. *uring tis time, &e strived to deal e""e%tively &it te +ear
and ,ani% !revalent in te mar-et !la%e. no& &e must deal &it mani"estations o" te
!ro#lems and te !ain"ul im!lementation o" a !letora o" e/!erimental %o%-tail solutions
#eing em#ra%ed. As most o" te issues are ne&, !oli%y ma-ers %an only a!!ly untested
remedies: 0esult: %risis management, trial1and1error metodology and an in%essant
determination to "ind &or-a#le solutions 2ones tat &ill set tings rigt again3.
It may #e el!"ul to te reader tat &e raise some questions &e "ind !ertinent and try to
%onstru%tively ans&er tem &itin tis re!ort to you. 24ou may ave oter questions o" your
o&n and &e &ould #e !leased to attem!t to ans&er tem.3
*o you ave any dou#t, tat te &orld is in an e%onomi% *e!ression'
$at %an go rigt'
Is tere a "i/' 5o& do &e get an e%onomi% re%overy'
)ese questions, and !ro#a#ly oter &ort&ile %onsiderations, i" addressed !ro!erly, &ill
el! anti%i!ate te li-ely e""e%ts o" tis %urrent %a!ital1mar-ets anatema. $e 6!retend7 to
ave a good notion o" &at is a!!ening and &at must o%%ur 2di""erent "rom !retending to
-no& &at &ill o%%ur3. In !revious re!orts to you &e ad outlined te negle%ted and
unsu!!orta#le issues tat ultimately #rougt us into tis inos!ita#le e%onomi% environment.
)e goal o" tis re!ort is to set out some o" our "or&ard loo-ing e/!e%tations, ones tat %an
!era!s #etter el! you understand our investment tougt !ro%ess and attem!t to e/!lain
te di""i%ult investment environment te &orld is still "a%ing. 2Individually, &e %an revie& te
istori% events and %auses #ut "or te !ur!ose o" tis %ommuniqu, &e "ind tat loo-ing
aead may !rove more !rodu%tive and more use"ul. mostly, te %ul!rit &as a gross, and
!era!s %riminal a#use o" leverage3
8ast autumn, te +inan%ial 9ystem 2te arteries tat %arry money "lo&s3 %ame &itin a "e&
ours o" a glo#al %olla!se. Money sto!!ed "lo&ing &itin te :an-ing system, &i% is also
te de1"a%to, li"e giving %as1"lo& artery o" te Ca!ital mar-ets and te "inan%ial &orld as &e
1
,aul ;rugman 2<o#el laureate3
-no& it. )o %ara%teri=e te %risis "urter, %on"iden%e &as sattered as &as trust, es!e%ially
#y in"ormed "inan%ial intermediaries intert&ined &itin our %ounter1!arty system. It did not
el! tat ine/!erien%ed 6video game7 "inan%ial1&i=ards !ani%-ed and sei=ed1u! on all
de%isions, mu% li-e a deer "ree=es on te s!ot &en you sine a ligt in it7s eyes. do
noting, &as te mani"estation>and trust no one, not even your o&n ?udgment.
)e @9 government &as in te !ro%ess o" %anging leaders, ,residential Advisors and ,oli%y
initiatives. )an-"ully, te %ri!!ling %aos &as not misandled troug te trans"er o" !o&er
and te ne& government !ro%eeded to ma-e e""e%tive %anges. )e %atastro!e &as
averted and some measure o" a "ragile1sta#ility no& seems to e/ists.
Instilling tis %on"iden%e %ame at a gargantuan %ost. questiona#le Aovernment guarantees,
)rillions o" dollars o" seemingly indis%riminate
2
s!ending2#ail1outs3, 6nationali=ation7 o" many
:an-s and industries, and an a%%elerated deleveraging !ro%ess. It is tis unstru%tured and
a%%elerated de1leveraging tat &as instrumental at unraveling te %a!ital1mar-ets 2sto%-s,
#onds, %urren%y, real1estate3 resulting in B0C or so dro!s in te sto%- mar-ets and a
destru%tion o" &ealt in te $orld estimated last Danuary at a#out @9* E(00 )rillion
F
. Gin
magnitude, a#out seven times te A*, o" te @9A or 2/ Aross $orld ,rodu%tH
)e so%ial %ost to date' @ndulating &aves o" unem!loyment &orld&ide, redra&n trade
routes, %ivil unrest 2riots3, middle1%lass im!losion, &ars, "amine, !overty. )e indis%riminant
s!ending #y te @9 government, o" money tey don7t ave, &ill %reate anoter untena#le
!redi%ament. Is tere a %oi%e' <o. :asi%ally, a uge !art o" tat a#surd and a#used
leverage &e s!o-e o", is no& #eing su!!lanted #y te @9A government e""orts to s!end its
&ay out te 6de!ression !ro%ess.7 Iter %ounties are also ado!ting su% measures. I e/!e%t
a 6<e&er *eal7 may #e !resented to te &orld #y te @9A 2or a re%i!ro%al overture. i.e.
oters &ill im!ose %anges on te @9A3, one tat &ill redra&2retin-3 -ey attri#utes o" te
reserve %urren%y status o" te @9*. ,era!s @9A may soon need to raise money in oter
%urren%ies tan te @9* to "und teir "uture s!ending requirements' )e @9A as never
de"aulted on !aying its @9* de#ts. o&ever, tey ave unilaterally %anged te guarantees
#a%-ing teir %urren%y. 2:retton $oods (9J(3. I also remem#er reading
K
tat @9A
*e!artment o" te )reasury2or *e!artment o" te Curren%y3, a#out t&o de%ades ago, !assed
legislation tat !ermits te %reation o" a 6#lue dollar7 i" need arises. At te time, te %on%ern
&as to "igt %ounter"eit e""orts and %riminal %as1a%tivities. $ell'
A *e!ression is not a moment in time, #ut rater, it is a !ro%ess. 2my o#servation3
I tin- &e are &ell &itin tis !ro%ess. $en te layo""s sto!, and &e start seeing !ositive
em!loyment num#ers, ten &e %an s!ea- o" a re%overy 2tose green soots imagined and
re!orted every&ere3 and o" ma-ing u! lost ground. )an-"ully, !oli%y1ma-ers are also
-eenly a&are o" tis determination and all e""orts are dire%ted to avoiding te 6Areater
*e!ression
B
.7 In oter &ords, &en &ill te re%overy %ome, o& long &ill it ta-e, and &en
&ill &e regain lost ground' 5ere, I raised some ne& questions tat are #eyond my %a!a#ility
to ans&er e""e%tively and maintain %redi#ility. 2Most o" te media and "inan%ial sootsayers do
2
Indis%riminate:7 !rinting o" money 6is no longer limited #y availa#lility o" in-. money is no& %reated ele%troni%ally.
3
<otional value o" derivatives 6out tere7 estimated at @9*EK80 )rillion. room "or more damage.
4
:lue *ollar 9orry, #ut I %annot "ind te original govn7t do%ument I read t&enty years ago.
5
*e!ression: 20C !lus unem!loyment. G9!ain, +ran%e already tere, @9A at (BC non1ad?usted. ?.e.
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
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ave in%redi#le ans&ers to tese questions and are as inventive &en tey a!!ly tem to
advising or investing 6oter1!eo!les1money7.3 At #est, &e o""er some o!e"ul ans&ers tat
are #y all means, un%ertain. 9u%%eeding at tis ig1&ire1a%t &ill %ome at a great %ost:
In"lation. I also tin- tat tis is te only 6"i/7 "or te e%onomi% *e!ression at and.
<ear =ero interest rate environment' )at is &at most #an-s o""er "or your %as de!osits. I
estimate tat Cas liquidities at #est earn a negative (.FC return a"ter ta/ and a"ter in"lation.
9o &ere is in"lation evident' ,era!s it is te &rong term. destru%tion o" !ur%asing !o&er
may #e a more a!!ro!riate des%ri!tion o" &at is "a%ing @9* olders o" %as and 8onger
)erm )reasuries. Gdoes not ne%essarily e/%lude oter %ountry %urren%yH As- I%elanders
a#out te de%ay o" teir %urren%y. ?oining te already #ogged Luro1#lo% is te solution
%onsidered.
8ast year es!e%ially, &e managed to navigate troug very adverse mar-ets and su%%eeded
in maintaining %lients7 savings inta%t. $at no&' An illustration may el!:
)&o investors A and :. Investor A &as "ully invested in te sto%- mar-et and lost K0C
on teir sto%-s in 2008 during te mar-et %olla!se. Investor : ad more #alan%e in
teir allo%ation and #eing only KBC in 9to%-s, lost say te same K0C on teir sto%-s
2Misavis sto%- !ort"olios !er"ormed noti%ea#ly #etter3. )e more !rudent allo%ation
de%ision some&at !rote%ted investor : as teir total !ort"olio in tis e/am!le lost (8C
during te Cras &ile investor A ad te "ull im!a%t o" te mar-et %olla!se and lost
a#out al" teir savings.
Investor A &aits and o!es "or a re%overy o" te !ort"olio &ile investor :, &o still as
BBC liquidities %an no& o!!ortunisti%ally !ur%ase some very mu% undervalued
se%urities. Investor A &ill regain teir %a!ital &en te mar-ets advan%e #y NJC &ile
investor : &ill need a smaller advan%e in te sto%- mar-et, i.e. a 22C a!!re%iation to
gain #a%- teir %a!ital. Anoter -een lesson 2re3learned #y many is tat all sto%-s are
ris-y. Managing tis ris- is &ere te %om!etent !ro"essional %an o"ten add more
value.
Maintaining some %as liquidities is still &arranted. 25ome1%urren%y !ra%ti%al %onsiderations
are assumed.3
A lo& ris-, diversi"ied !ort"olio, o" #lue1%i! :an- sto%-s no longer olds te same meaning
"or an investor nor "or te ty!i%al advisor. )e &orld as %anged as ave !er%e!tions.
)e !ress' $ell, te "e& tat are not la=y or oter&ise in %on"li%t, still do a de%ent ?o# at
regurgitating istory, vested interest grou! disseminations, and %a!turing eadlines. A"ter
#eing !rovo-ed #y reading a silly !ress item re%ently, "rom a re!uta#le !u#li%ation, I &as
ins!ired to &rite a N1&ord1story
N
:
&'verestimate( intelli)ence (oes im*ress un(erestimate( stu*i(ity+& ?.evdo-ias
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2as de"ined and e/em!li"ied #y L. 5eming&ay3
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
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In a similar manner to Investor : and &ere a!!ro!riate, &e ave already o!!ortunisti%ally
in%reased your equity oldings troug tis mar-et %olla!se. )e im!rovement in mar-ets
sin%e Mar% is &el%omed #ut is &ay aead o" te reality tat is "a%ing tis e%onomy.
Luro!e is no& also e/!erien%ing a material slo&do&n in #usiness a%tivity. some :alti%
J
nations may leave te 6L@ #lo%7. @9A is qui%-1"i/ing teir trou#le #y #orro&ing teir &ay out.
Cina as no trou#le o""i%ially, e/%e!t "or teir distra%ting investment !ort"olio in @91
)reasuries, %ustomers in a &orld e%onomy on te verge o" %olla!se and al" a #illion
disillusioned, re"ormed !easant1%a!italists tat may soon see- a %ul!rit "or teir malaise.
Cina7s gro&ing e%onomy is suggested to #e a #ig !art o" te remedy. I" you %onsider tat
Cali"ornia7s A*, is t&i%e te si=e o" Cina7s, it suggests tat %anges must also #e made in
<ort Ameri%a. Ireland, :elgium, @; are on te verge o" %olla!se. Aovernments &i%
!reviously re%orded sur!luses are no& generating de"i%its. GCanadaH
9o, &at as else as %anged' Consumers are no& %ur#ing teir &ild s!ending #y
ne%essity or %oi%e. Credit is again #e%oming a !rivilege not a rigt, 0eturn o" %a!ital is no
longer an assum!tion #ut as #e%ome a "ore"ront %al%ulation. te %om"ort o" a sovereign
guarantee as lost mu% o" its %a%e, one government #ail1out a"ter anoter>&i% reminds
me o" an im!ulsive, timely and !era!s morose re%ent attem!t at !oetry:
,-ast .ee/ I starte( .ritin) on Bailin) out t0e !itanic"
'n Sun(ay I 1e)an a)ain un(er a mo(i2ie( title Bailin) out t0e Bermu(a !rian)le
!o(ay I reali3e( t0at I (on4t nee( to 1ail out anyt0in) else, 2or I am a1out to (ro.n"
5ul*+6
7"8" " Se*tem1er 19, 2::;"
6Common %ents, un%ommon dollar7: 9mart !eo!le do ma-e dum# mista-esOtat so many
smart !eo!le made te same dum# mista-e is note&orty. ?ust as- any !ension "und
administrator no& relegated to dealing &it disaster management and teir s%reaming
%asualties, te !ensioners. $at trans!ired &itin tis industry is un"atoma#le and &as
unne%essary. )o illustrate, !lease %onsider te e/%er!t "rom a dated, Misavis email to te
I""i%e o" te 9u!erintendent o" +inan%ial Institutions 2I9+I3 !rovided "or you in A!!endi/ (.
@9 Aovernment7s trillion1dollar !lus #ailout !rogram "or to/i% !a!er: I tin- te a!!roa% o"
aving 5edge +unds25+3 administer te !ro%ess &ill !rove as e/!losive. $at &ill later add
"urter in?ury, on%e te 5+s re!a%-aged tese PminesP under te ne& um#rella, tis ne& PF1!ly
%ommer%ial !a!erP 2same 3$*ly &e all use3 &ill on%e again, "ind its &ay into te !u#li% %o""ers.
dire%tly or indire%tly troug te !ension "unds and oter %a!tive audien%es. )is 5+ %leanu!
is a #it li-e o& *e"en%e %om!anies sold and de!loyed millions o" land1mines and ten &ere
!aid to %lean u! te mess tey %reated and !ro!agated.
7
!ossi#ility o" a multis%ale :alti% devaluation and a sar! CLL sell o"" in te &a-e. tt!:QQ%lausvistesen.squares!a%e.%omQ
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
4
9ummary:
5o&ever o!e"ul I am tat tere &ill #e an im!rovement, time, and ten more time is
required. 5ere are some develo!ments &i% must o%%ur:
9ta#ility and %on"iden%e must return to :an-ing.
Con"iden%e must return to te investor.
Consumer must start s!ending again.
Investors2#usiness, !ension, individual3 to ado!t more realisti% e/!e%tations.
:usiness must tin- and a!!ly strategies longer1term.
,rote%tionist im!ulses must remain in %e%-.
8
Croo-s, liars and %eats must go to ?ail.
8a&s must #e re&ritten to #etter !rote%t te investor.
In%om!eten%e must #e "lagged to !rote%t te unsus!e%ting and inno%ent.
)ere is eviden%e tat some o" tese desira#le and trans"ormative %anges are o%%urring.
In summary, diversi"ied !ort"olios #y Aeogra!y, Industy and Asset %lass &ill generally do a
good ?o# at -ee!ing your savings inta%t and &ill o""er de%ent gro&t during good e%onomi%
%limates. )e last "e& monts you may ave already noti%ed your !ort"olios invested in some
L)+s
9
o" Luro!ean and Asian Lquities.2Aeogra!i% diversi"i%ation3 Lngaging in %all1o!tion
%overed1&riting, as &e ave done &ere a!!ro!riate, &ill also in%rease te in%ome generated
#y your !ort"olio.
4ou already -no& tat %urren%y is an im!ortant issue as is te e%onomi% relian%e o" Canada
to te @9A. +or tis reason, &itin your Ameri%an %om!onent, o&ning @9 equities is
!re"era#le to o&ning @9 #onds or @9* %as. a iger &eigting to resour%es &ill also el!
address te "uture in"lation &e anti%i!ate &ill #e%ome a %ornerstone issue again. )e goal is
to !reserve te !ur%asing !o&er o" your savings.
As stated earlier, -ee!ing lo& @9* %as and lo& or no long1term +i/ed In%ome !ositions may
#e te !rudent de%ision. &it @9* liquidities, investing in quality ard assets, equities, and
oter 6in"lation "riendly7 assets are te !re"erred %oi%es. Aold o&nersi! is still
en%ouraged
(0
.
In general, a valid adage, tat o" 6o&ning Lquities o" a %ountry &ose %urren%y is de!re%iating
and :onds o" te %ountry &o7s %urren%y is a!!re%iating7 &ill do a de%ent ?o#. I" &e are
%orre%t, and interest rates in%rease materially 2i.e. (0 year yields to in%rease at least t&o "old3,
&e %an ten %onsider to de!loy more o" your igly liquid +i/ed1In%ome %om!onent into
longer maturities &itin your !ort"olios. 2At tat time, I e/!e%t tat stated in"lation &ill also #e
mu% iger.3
Misavis Investment Counsel In%.
<=(visors to >iscrete an( >iscernin) Investors?
8
6!rote%tionist elements7: <ot every %ountry %an try to e/!ort teir &ay out o" te e%onomi% slum! as Da!an ad done. $o &ill lose out'
9
L)+: L/%ange )raded +und
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Insurance company makes First Gold Buy in 152 Years (please see appendix 2)
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
5
A!!endi/ (
From: John Evdokias
Sent: Thursday, May 07, 2009 1:46 M
Su!"e#t: ensions: $o% a &ood '(an %ent !ad) *****+ho% a !ad '(an %ent !ad+ "*e*
...)e sta-es &ere sim!ly #e%oming too large to leave te res!onsi#ility to !art1time management, e
e/!lains...
...)e universityPs !ension "und ad KN !er %ent o" its assets in tis alternative %ategory at te end o" last
year R u! "rom ?ust (8 !er %ent te year #e"ore R &ile equities a%%ounted "or F9 !er %ent o" te oldings
and #onds (B !er %ent....
...And no&, te very e/isten%e o" one o" CanadaPs most innovative investment "unds is in question #y te
university tat is #earing te #runt o" its losses..S
0tt*:@@..."t0e)lo1ean(mail"com@servlet@story@A!5=M"
2:::5:9".rutam:9@8mailBBStory@Business@0ome
,ro#a#ly a%%urate #ut !art time management may ave #een #etter tan "ull1time mismanagement. )is
de!lora#le and damaging &ealt destru%tion sould never ave o%%urred. *isregarding !rudent
investment mandates in "avour o" #eta1testing edge1"und #la%- #o/es, along &it "ailing at !ro!er
allo%ation o" assets did tem in...many more to "ollo& I e/!e%t.
@ndis%losed, unrealisti% assum!tions, a !oor manager sele%tion !ro%ess and !era!s some stru%tural
%on"li%t o" interest issues are also %ul!rits. $ould you still see- te advi%e o" your *o%tor, one &o
misdiagnosed your situation, and unne%essarily %ut o"" one o" your lim#s' $ell, te same Pdo%torsP are
still giving advi%e to teir !ension !atients. I sus!e%t tat admitting to a P?udgment errorP may #e !er%eived
as more damaging to te de%ision ma-ers tan te losses. ,ut a "a%e #eind te loss, and ten you &ill
see o& qui%-ly tat mis1!er%e!tion %anges.
Most !ro"essionals ide #eind te usual and overused e/%use. S$o &ould ave anti%i!ated tis
anatema'S $ell, some did. not #e%ause tey are more %lever, !era!s a little &iser, #ut mostly #e%ause
tey %onsidered te a#normal area o" a distri#ution o" li-ely events. I tin- tat &or-ing &it only N8C o"
e/!e%tations 2i.e. normal distri#ution3 as !roven to #e im!rudent.
)e Pneed "or greedP &as surely es!oused and !ro!agated #y te generous in%entive "ees !aid "or out1
!er"orman%e and te la%- o" a #etter de"ined a%%ounta#ility and res!onsi#ility guidan%e. Iut1!er"orman%e
goals are lin-ed to iger ris-s. $as it te intention, to ta-e iger ris-s &it !ension money' 9i/ years
ago, &e &rote to te <i%- 8e,an at I9+I a#out su% !ro#lems "a%ing te !ension industry and te need
"or more ro#ust guidan%e.
an e/%er!t:
,""">ecisions ta/en no. are *art o2 t0e stress$test .e are un(er)oin), 2rom .0ic0 our 2inancial
system must soon )ra(uate" In sta/e0ol(ers, I .oul( inclu(e all .0o 0ave *ensions or are
a22ecte( 1y *urveyors o2 services to t0is sector" Won(er i2 t0at leaves anyone outC Dour .or/
an( e22ort is central to t0e liveli0oo( an( *eace$o2$min( o2 )enerations to come, so *lease )et
t0at across to t0e veste( interests you re)ularly inter2ace .it0 t0ese (ays an( i2 you can, to
Ca1inet mem1ers also" EMEMEM is not t0e issueF t0e 2inancial .ell 1ein) o2 =-- Cana(ians is
t0e issue"
Investin) o2 *ension money must 1e more clearly (elineate( an( *resente( more clearly to t0e
*u1lic" Ger0a*s a re2orm to t0e *revious$re2orm is a)ain necessaryC Gro1a1ly an on)oin)
*rocess" May1e i2 money$mana)ers an( cor*orate eHecutives, are in t0e 2uture ma(e *ersonally
lia1le 2or (isastrous investment (ecisions, it .ill assure t0at all *ensions 1ecome an( remain 2ully
2un(e(
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
6
W0at to (oC Continue to 1e 2air, eIuita1le, 2leHi1le, an( *atient, 1ut remain un.averin) to t0reats
to t0e Gension Jun( inte)rity"<you .on4t 1e *o*ular? !0e Ca1inetC !0ey also reIuire a clearer
un(erstan(in) o2 t0e issues an( ris/s, 2ree o2 veste( interest lo11yin)"6 """" Visavis 29'ct2::3
0esult' $istling in te &ind, al#eit, more gentle tan usual as I got a res!onse and s!o-e
&it someone at I9+I.
TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
A,,L<*IU 2
Northwestern Mutual Makes First Gold Buy in 152 Years >>>:y Andre& +rye
Dune ( 2:loom#erg3 11 <ort&estern Mutual 8i"e Insuran%e Co., te tird1largest @.9. li"e insurer #y 2008
sales, as #ougt gold "or te "irst time te %om!any7s (B21year istory to edge against "urter asset
de%lines.
Aold ?ust seems to ma-e sense. it7s a store o" value, Cie" L/e%utive I""i%er Ld&ard Vore said in an
intervie& "ollo&ing is %omments at a %on"eren%e osted #y 9tandard W ,oor7s in :roo-lyn. In te
*e!ression, gold did very, very &ell.
<ort&estern Mutual as a%%umulated a#out EK00 million in gold, and Vore said te !ri%e %ould dou#le or
even rise "ive"old i" te e%onomy %ontinues to &ea-en. Aold gained (0 !er%ent last mont, te most sin%e
<ovem#er. )e %ommodity as more tan tri!led sin%e 2000, rising "or eigt straigt years. Aold "utures
"or August delivery sli!!ed EK.80 to E9JB.B0 at K:0F !.m. in <e& 4or-.
)e do&nside ris- is limited, #ut te u!side is large, Vore said. $e ave sto%-s in our !ort"olio tat lost
9B !er%ent. Aold is not going do&n to E90.
,oli%yolder1o&ned <ort&estern Mutual, #ased in Mil&au-ee, ran-s tird #y 2008 li"e insuran%e
!remiums a%%ording to data "rom te <ational Asso%iation o" Insuran%e Commissioners. )e data
e/%ludes annuities.
)o %onta%t te re!orter on tis story: Andre& +rye in <e& 4or- at a"ryeX#loom#erg.net
8ast @!dated: Dune (, 2009 (N:FK L*)
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Northwestern Mutual: Less Risk in Gold
:y Carrie :urns Dune (, 2009
<ort&estern Mutual 8i"e Insuran%e Co., Mil&au-ee, as #ougt gold "or te "irst time in (B2 years to
edge against "urter asset de%lines, :loom#erg re!orts. A%%ording to te ne&s servi%e, <ort&estern
Mutual as a%%umulated a#out EK00 million in gold, and CLI Ld&ard Vore says te !ri%e %ould dou#le or
even rise "ive"old i" te e%onomy %ontinues to &ea-en.
Aold ?ust seems to ma-e sense. it7s a store o" value, :loom#erg re!orts Vore saying in an intervie&
"ollo&ing is %omments at a %on"eren%e osted #y 9tandard W ,oor7s in :roo-lyn. In te *e!ression, gold
did very, very &ell.
Dust last &ee- te greater !ress re!orted tat @.9. gold "utures are u!, su!!orted #y a %om#ination o" a
&ea-ened dollar, in"lation %on%erns and simmering geo!oliti%al tensions. Aold gained (0C last mont, te
most sin%e <ovem#er.
)e do&nside ris- is limited, #ut te u!side is large, Vore says. $e ave sto%-s in our !ort"olio tat lost
9BC. Aold is not going do&n to E90.
tt!:QQ&&&.insuran%enet&or-ing.%omQne&sQ1(2K221(.tml
Visavis Investment Counsel Inc: 1255 University Street, Suite 1212, Montreal, QC H3B 3W !el" 51# 3$3%
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