Short-Term Paper, Quality Names and Gold

Short-term Treasuries look attractive. The 1-month T-Bill offers a 4.67% yield. Beats cash and beats holding an equity index fund or ETF.

I’m always a fan of owning Quality companies at an attractive price. However, I don’t value equities as most investors do – I don’t bucket stocks into “Value” “GARP” and “Growth” buckets. I prefer to own growing companies with a sustainable competitive advantage as well as a sustainable customer value proposition. It is difficult now as many quality companies trade at full value. CoStar Group (CSGP) is a good example. It’s a great company and Andy Florance is my favorite Technology company Founder/CEO. However, given the valuation and given the backdrop in the “Office” category of commercial real estate (CRE), I would not beat the door down to own the stock.

Gold is always attractive. The United States Government will always want to spend more next year than the previous year. Given that the U.S. spends more than what it takes in from a Tax Revenue standpoint, it guarantees that the Fed will have to print money to fill the fiscal deficit. Thus, it is a certainty that the U.S. Dollar will continue to be devalued over time.

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