SPDR Gold Trust (GLD)

[msmithgold]

David Einhorn's Case for Gold

David Einhorn's Case for Gold Under Trump Presidency

In light of Trump presidency, thoughts on current positioning:
Long a variety of low-multiple, tax-paying, US value stocks: most benefit to companies that have profits on which to pay taxes (AMERCO, CC, Dillard’s, and DSW)
Long AAPL: to benefit from repatriation of foreign cash and tax reform
Long GM: more jobs, higher income, and higher wages to drive demand for consumer durables; also falls under low-multiple, tax-paying US value stock category
Short “bubble baskets”: mostly don’t have profits (no tax benefits) and accelerating economy should allow investors to find growth without needing to pay nosebleed prices for a narrow group of profitless top-line growth stocks (Netflix)
Short oil frackers: economies still don’t work when all investment and corporate costs are taken into account; “drill-baby-drill” attitude is likely to lead to additional mal-investment which will lead to lower prices and deeper losses; generally not cash tax payers
Short CAT (and a few other similar industrial cyclicals that have moved much higher post-election): CAT sells machines that are used in infrastructure but this is only a small part; CAT’s biggest segments are mining and energy; just completed once-in-a-generation boom in iron ore mine development and horizontal drilling which means we can produce more oil with fewer rigs; even in infrastructure boom, CAT closed the year at 33x forward earnings
Continue to own gold; there has been a knee-jerk decline in gold since the election, as investors presume that higher short-term rates are good for the dollar and bad for gold; great economic, geopolitical, and policy uncertainties, wider budget deficits, and possibility of inflation problem all support gold

https://investoralmanac.com/2017/01/17/greenlight-capital-4q16-letter-positioning-for-trump-presidency/