My Review of "The Other Side of Wall Street"

This is an interesting memoir of a Wall Street insider's (Todd Harrison's) look at his life, so far, and his experiences in Wall Street. Things of note...

1. His grandfather, Ruby, told him all you have is your name and your word, and that honesty, trust, and respect were the foundation of any successful endeavor. Over the years, Todd confused net worth with self-worth. Dad left when he was 2, Mom and Todd moved from house in NJ to apartment in Great Neck, LI. He was diagnosed with ADHD, didn't fit in socially, placed in private school, 7th grade in Great Neck South Middle School, Bagel shop boy at 13 - learned if you want money get a job. Still had ADHD, but did well in sports and had a pretty traditional childhood. Jr and Sr year HS spent in CA to be with dad. Applied to UC Santa Barbara, San Diego State, Boston U., and Syracuse. Went to Syracuse, good education, sports program, fraternity, did well. Met friend Kevin Wassong at Syracuse, talked about working together sometime, Kevin got job at reative Arts Agency, Todd got a business degree, in finance so to be near the "cash register." Todd got an internship at Morgan Stanley, then hired by them after school - Chuck Feldman made the offer.

2. At MS, clueless at first, worked at the equity derivative desk. Slow, but learned - "Buy-write" - long calls, short stock, "synthetic put" - long stock, short calls - "married put" ,long put, long stock.

3. Jim Cramer called, "Do you like ....what do you think? Todd said "yeah," Cramer hung up. Learned to give quick answer, not waste time.

4. 1st yr - $28K, no bonus. One incident told sell something, couldn't, told to lie.

5. 2nd yr - same, no bonus, warning, 3rd yr,/1993 - $75K, 4th yr, $150K

6. Had a big loss with First Interstate Bank, learned money makes you do things you don't like, became arrogant, cocky, innocence gone replaced with power.

7. Saw that WS had an uncanny ability to recreate, repackage and sell risk. And, saw steady stalwarts passed over for promotions - bad things happening to good people - all politics. Then, he was "ambushed" - told he couldn't be trusted, joined the Galleon Group hedge fund, they needed a derivative specialist. Struggled at first with Galleon - no bonus, told lucky to have a job. Then, Asian contagion, Greenspan stimuli, seeds of dot.com bubble which evolved into booms and busts in next decades.. By 1999, things were good, he began to covet things, wanted to be a partner.

8. Moved to Cramer-Berkowitz hedge fund as partner, smaller $400M fund, base salary $300K + % of profits, ran trading operation. Cramer was master of momentum and Berkowitz had a brilliant analytical mind. After Cramer threw a tantrum over a bad trade, Todd saw the true colors - you are only as good as your last trade - never the same for him. 4/2000 NASDAQ dropped 20%, in Summer, Cramer had Todd write column for Street.com - "The switch was flipped." Dad in jail in Hawaii, Bipolar like Cramer, Todd decided to leave, $5M final paycheck, $700K annual salary at the time. Cramer went on to CNBC, Berkowitz headed fund, Todd went to Street.com to write.

9. 9-11 hit, falling out with Street.com, decided to leave.

10. Met Casey Cannon, entertainment field, found bridge between finance and entertainment, Minyanville was born with "Hoofy and Boo" characters, launched 10/2002 along with the Ruby Peck Foundation. 12/2002, quit Berkowitz-Cramer, Street.com and started own small hedge fund. But made wrong call after financial collapse, didn't anticipate strong recovery, was wiped out. Became depressed. It took losing nearly everything to understand what real wealth was - happiness is not in a bank account.. Fork in the road, almost insolvent, decided to focus on Minyanville and foundation, Kevin Wassong joined him - remembered, "do whaat you love and the money will come." Minyanville won an Emmy. Finally, real success. In business, be an animal, in life, be yourself.

So, a pretty good memoir. My thinking from the book, is that he was successful at Galleon, because he had good tips, but recent uncovering of insider trading at Galleon, Todd was only successful because he was given illegal info, though he probably didn't know it was illegal. And, his success trading at Cramer-Berkowitz, was because Cramer, a genius of momentum, caught the dot.com bubble run-up just right. His real talent was in learning the inside of Wall Street and writing about it in an entertaining way. So, a worthwhile book, in learning a little bit about one of the Wall Street players and his connections.

4 out of 5 stars.

Portfolio - "Update"

I've done a few things to my portfolio. When a CD came due, rather than roll it over, with interest rates on CDs not as good as dividends for the kind of quality stocks I own, I added more shares of some stocks I already owned and added stocks of Johnson & Johnson (JNJ) and Walgreens (WAG). I added JNJ because it was now selling for much lower than I had previously sold it at and it remains a quality company with a nice dividend which is raised annually, plus it has a super great balance sheet. WAG, I have never owned, but have always wanted to if the dividend was in the range which is acceptable. Now it is, also with a pristine balance sheet and a policy of raising dividends generously each year. So, now with my kind of stocks generally paying more than CDs, stocks now make up about 23% of my assets - higher than my usual goal of about 15%.

Plus, I have sold the shorter term TIPS I owned since they were at a profit and reinvested the funds in longer term TIPS which I was able to buy below par, so I was guaranteed a profit with them, plus they offer protection against future inflation. Plus, some of the profit from the TIPS I sold, I used to buy more shares of the stocks I own.

Stocks are listed in order of largest position to least:

KMB (Kimberly Clark)
PG (Procter & Gamble)
MMM (3M Corp)
PEP (Pepsico)
KO (Coca Cola)
SYY (Sysco)
KFT (Kraft)
ADP (Automatic Data Processing)
T (AT&T)
GPC (Genuine Parts)
BMY (Bristol Myers Squibb)
JNJ (Johnson & Johnson)
WAG (Walgreen)

My major asset remain CDs. I don't own a home, though I do think that is OK, as long as one doesn't go into much debt to do so. I have no debt at all, and never want any, though I do think some is OK for a home, especially in the areas which were first to collapse during this Housing decline. I also own US Treasuries, about 6% of my assets. Right now I own inflation protected ones (TIPS). The ones I hold are...

2028's

I like them because they protect both against deflation and moderately against inflation. I also own some gold (coins), but it is only about 3% of my assets and use a safe deposit box to store it. Gold does not qualify as an investment, but I do think it is warranted as a small insurance policy on US currency.

The "Joseph Oppenheim Kicker Theory" to Investing

For everything in life, including investing, I always look for what I call a "kicker," something extra which increases the chances for success and/or reduces the chances for failure, or just adds something beyond the main goal(s). Let's say you are looking for a job. Maybe one pays less but is located where people come to vacation - with many fun things to do and great weather - I would say it has a kicker. Same with investing. Some investments protect against inflation, some against deflation, but there are also some which protect against both even if the don't offer bigger rewards. This "kicker" is really a built-in hedge or diversification. I like the word, kicker.

For instance, let's say I want an investment which will protect me against deflation, but in case I am wrong and the opposite happens, inflation, then I can also win. This would be different that just buying a hedge or diversifying. Hedging and diversifying are also important tools, however, if one can essentially find the equivalent already built into the investment or decision, that is a "kicker" and in my opinion makes for a better investment.  So, in the case of such an investment, like a higher rate long-term Certificate of Deposit (CD) would be a protection against deflation, however if the CD has a low or reasonable early withdrawal penalty, one could always easily exit the CD and open a new one with a higher rate at a minimal cost, if inflation happens and interest rates unexpectedly go up significantly.

Another example. when selecting a stock, first I look at it as I would in buying a business, essentially shares of a company I would like to own completely if I could. So, thinking along that line, I would want a businesss which would do well no matter what happens with the economy. That would lead me to a company providing some kind of low-priced staple or service which people need all the time.

Another example, I always recommend investing in quality assets, be they stocks, bonds, etc. Even though potential rewards might be less than with riskier assets, there is always a premium paid for quality and due to unforeseeable situations, it might be difficult to dispose of a non-quality asset. So, in such a case, I call quality a kicker. Another case, CDs come without paying a commission, again, a kicker. Same with buying a home, look for a kicker -like it can be also used as a vacation home, etc

Sure, some might want to speculate and thereby obtain a greater return if one is right, that is by taking greater risk, but that is where I separate a speculator from an investor and I only want to think of myself as an investor, that is building in some protection while not getting greedy. Greed is not good and speculation and greed seem to go hand in hand.

Comment on the Economy - "America's Economic Crossroads"

It is a little past the middle of 2010 and we are in what has been called, "The Great Recession," since the end of 2007. Thus far, we have rebounded from the extreme panic which began in 2008 and bottomed in March of 2009, but recently some indicators suggest that we might be on the cusp of a "double dip" recession which could turn from recovery to some severe nastiness. Indicators are the weakness of some European economies, signalling hardship for Europe which could threaten demand for US exports and other assets like US securities, etc. And, there is concern for US government debt levels which could threaten the US currency and the US's ability to issue debt to finance further economic recovery. Plus, US unemployment remains  a concern, with the economy not creating enough jobs, especially by private employers.

So, I say, we are at an economic "Crossroads." I think the most important indicators to watch to see where the US goes from here are 1) The US stock market - I use the Dow since it has been around longer than the S&P and does track the S&P pretty accurately anyway, and 2) The US bond market - I like to most watch the 10-year Treasury Bond interest rate.

As for the Dow, after rebounding to about 115000, it recently declined to around 10,000, an acceptable profit taking from the recovery rally, but further deterioration from there could cause real worry.

As for the Bond market, 10-year Treasuries have an interest rate of about 2.70, which is cautionary of upcoming weak economics, though there is strong demand for the bonds, hence a somewhat healthy sign still for the US economy. So, both stocks and bonds each indicate some good things, but also some worry - in effect the "crossroads" I mention.

It looks like this crossroads will likely be resolved in one direction or the other with the upcoming Congressional elections in November. The way I see it, with the economy still deleveraging (the removal of private debt - foreclosures, bankruptcies, etc), there is no immediate risk for the government to take on more debt as long as the money is well spent. By well-spent, I mean things which are investments, which eventually return more than they cost. Things like education, healthcare, infrastructure, and energy efficiency. So, for sure we should not lose jobs which work in that direction, hence the federal government should help state governments so as not force them to layoff such workers or cut such programs.

Since the indicators I mention are still positive from the depths of the Recession, it does seems Obama and Democratic leadership in Congress can be judged as successful, albeit modestly. Plus, it seems other than a few Republicans, most have been working against the President and Democrats actually hoping they fail, that is America fail. And, what almost all Republicans propose is exactly the opposite which the economy needs now, like I mention above.

Yes, the deficit and national debt are problems, but not right now. And, like I say with the stock and bond markets up from the end of 2007, that should mean improved government tax revenues in 2011 as long as they remain healthy for the rest of the year. So, as for our government debt, all that is necessay now, is to come up with a plan to lower it, and there is a bi-partisan committee chartered with that, in place now.

So, we are at a crossroads and much is to be determined with the November elections and anticipation of what the results might be. Plus, the stock market does usually experience stress in September and October.

My Review of "The Big Short."

The book, by Michael Lewis, is very good at detailing the situations and characters involved in the financial mess caused by the recent housing bubble and how a few people anticipated it and bet big on it happening.

The book starts with a quote by Tolstoy about the importance of being open-minded in order to understand complex things and being close-minded keeps someone from understanding even simple things. The author was amazed how in the mid 1980's, Salomon Bros. would pay him good money, a 24 y.o. with no clue. Yet, he figured out then that the big money was made in the bond market not stocks, leading up to the junk bond collapse in the 80s. He then wrote about it, and here it was essentially happening all over again with the bond people. CEO's knew nothing of the risks their bond traders were taking. He hoped bright college students would avoid Wall Street, rebel against it and just pursue what they loved. But, no, the financial system would again be discredited. He then goes into these key things in this mess like:

1. Meredith Whitney, then an obscure analyst at Oppenheimer & Co, with just a BA from Brown who studied English, said Citicorp was so mismanaged it would cut its dividend or go bust. The so-called experts were still not acknowledging the risk in the sub-prime mortgage market - not that they were corrupt, just stupid. She was trained by Steve Eisman who also gave her a world view - how to see the big picture when analyzing stuff. She read about John Paulson, a hedge fund manager, who made big bets against the bonds and there were a few others. Eisman, U. Penn and Harvard, but also yeshiva trained and loved the Talmud because of its contradictions - he had the mind set to look for investment contradictions. He saw Wall Street going where it never went before - into the debts of ordinary Americans - cash flow from pools of mortgages - the only risk back then was of borrowers paying off soon, but never not at all. So, this new market, never really tapped into to such an extent, homes, and let less credit-worthy people to buy homes, but the real risk was in letting them cash out and refinance to get more money, basically a fast buck business with the issuers of the mortgages just selling them off and not caring what happened long term. Society had changed, with incomes more skewed, more wealthy and more struggling - so this was a way to let those left behind in the economy to prosper, even feel wealthy - letting them borrow easily. Oppenheimer was getting into this new market. Eisman needed Vincent Daniel, from Queens and SUNY Binghamton whose father was murdered - so different roots, to parse data. Found that delinquency rates were hidden, only profits from prepayments were visible.

2. 1997 Russia defaulted, 2002 Eisman saw HFC was a fraud - tricking customers on interest rates, Eisman was aware of ACORN -was a Republican until he saw an entire industry, consumer finance, existed just to rip people off.

3. By 2005, 75% subprime loans were floating rate, fixed for just 2 years. Long Beach Savings was the first to get into this, soon followed by big WS banks - run by the bond departments.

4. In 2004, Michael Burry got into them, seeing decline in lending standards, but hard to short, then he discovered Credit Default Swaps (CDSs). Charlie Munger gave lecture about the "psychology of human misjudgment."

5. 2ndQ 2005, credit card delinquencies at all-time high, but home prices continued going up. Hallmark of a bubble/mania/fraud.

6. AIG on the other side of the bet, issuing the CDSs. Goldman created the CDO and synthetic CDOs which had in them CDSs. Home prices didn't need to fall, just not go up as fast. Tom Fewings, the first in AIG to spot trouble - when seeing WSJ article on New Century. Joe Cassano, head of AIG FP didn't think home prices would fall, at least not nationally, all at once - eventually did change his mind, but still exposed. Mid 2006 home prices began to fall.

7. FICO scores had blind spots - didn't acct. for people's income, could be rigged by getting a new credit card and paying off right away, no differerence between "thin file" and "thick file" borrowers, teaser rates hid risks, averages were used for pools of mortgages which hid the amount of low FICO scores of those who should never have been given mortgages, "silent seconds" allowing borrowers to have no equity in their home.

8. Few used CDSs as outright bets against housing, most were used as hedges while still hoping for the bonds to work out. Exceptions were those who listened to Greg Lippman's pitch, like John Paulson. Paulson/Eisman/Burry understood the risk. Ledley/Hockett/Mai just bet on the least likely possibility - their strategy. Rule of thumb - buy homes when price equal or less than 10X rent and sell when 20X.

9. Names and acronyms hid risks - CDOs not called subprime backed CDOs, but structured finance CDOs, RMBS, HEL, HELOC, ALT-As were just no-doc crappy loans, Rockridge community not called Oakland so homes would sell for more. Actually, 80% of a CDO was overrated, so even better to bet against the higher tranches, since the CDS would be cheaper but the same likelihood of default.

10. Wing Chao, called a CDO manager, which were essentially front men for WS firms, could collect bigger salaries and imply they actually studied the CDOs.

11. Rating agency people were underpaid- should have been paid more to attract talented people - they just made their money by collecting fees for each rating, so just pushed them through quickly. Like a Ponzi scheme - more morons than crooks, but the crooks were higher up. WS just propped up CDO prices while it could - fraud was rampant - neither the WSJ nor SEC was interested.

12. Now Bear Stearns at risk. Merrill had advised Orange county before their bankruptcy, was in the middle of the Internet bust, 80's bond market bust, so naturally they would be in the middle of this.

13. Jim Grant couldn't figure out CDOs then realized that was the story to be told.

14. When Goldman got into the bet against CDOs, then CDOs began to tank. 4/2007 New Century went bankrupt. BS leverage 40:1,Lehman & ML 32:1, Morgan Stanley & Citicorp 33:1, GS 25:1. Only a slight decline could bankrupt them all. 9/2008 Lehman went bankrupt, ML $55B loss - sold to BA. WS firms were the dumb money, CEOs stupid. Bear Stearns Chioffi and Tannin arrested.

!5. It was greed, sure, but more the incentives which channeled the greed. Then, the people who didn't see it happening were the ones to clean it up - H. Paulson, Geithner, Bernanke,etc. Then H. Paulson engineered the $700B bailout of the worst culprits.

An important book, the only criticism I have is that it could have been shorter, but I guess the author did want it to read like a story and illuminate some specific personalities, which will probably make the book easier to make into a movie.

4 out of 5 stars.

Portfolio - "Update"

I've added a position in AT&T (T) to my stock portfolio. The stock pays a high dividend (about 6.5%) and raises it annually. With a PE of around 12 and the price having dropped recently, it was very attractive. Stocks represent about 15% of my investment portfolio.

Listed in order of largest to smallest holdings:

KMB (Kimberly Clark)
PEP (Pepsico)
PG (Procter & Gamble)
MMM (3M Corp)
SYY (Sysco)
KFT (Kraft)
ADP (Automatic Data Processing)
KO (Coca Cola)
BMY (Bristol Myers Squibb)
T (AT&T)
GPC (Genuine Parts)

My major asset remain CDs. I don't own a home, though I do think that is OK, as long as one doesn't go into much debt to do so. I have no debt at all, and never want any, though I do think some is OK for a home, especially in the areas which were first to collapse during this Housing decline. I also own US Treasuries, about 7% of my assets. Right now I own inflation protected ones (TIPS). The three I hold are...

2015's
2013's
2028's

I like them because they protect both against deflation and moderately against inflation. I also own some gold (coins), but it is only about 3% of my assets and use a safe deposit box to store it. Gold does not qualify as an investment, but I do think it is warranted as a small insurance policy on US currency.

Portfolio - "Update"

I've added a position in Genuine Parts Corp. (GPC) to my stock prtfoilio. It is a solid auto parts company with little debt and a good dividend, along with a history of raising the dividend annually. I've also added some 2028 US Treasury (TIPS) bonds as added protection against future inflation. Stocks represent about 15% of my investment portfolio.

Listed in order of largest to smallest holdings:

KMB (Kimberly Clark)
PEP (Pepsico)
PG (Procter & Gamble)
MMM (3M Corp)
ADP (Automatic Data Processing)
SYY (Sysco)
KFT (Kraft)
KO (Coca Cola)
BMY (Bristol Myers Squibb)
GPC (Genuine Parts)

My major asset remain CDs. I don't own a home, though I do think that is OK, as long as one doesn't go into much debt to do so. I have no debt at all, and never want any, though I do think some is OK for a home, especially in the areas which were first to collapse during this Housing decline. I also own US Treasuries, about 7% of my assets. Right now I own inflation protected ones (TIPS). The three I hold are...

2015's
2013's
2028's

I like them because they protect both against deflation and moderately against inflation. I also own some gold (coins), but it is only about 3% of my assets and use a safe deposit box to store it. Gold does not qualify as an investment, but I do think it is warranted as a small insurance policy on US currency.

Portfolio - "Update"

Other than adding to positions in SYY and ADP because of favorable price points, and renewing maturing CDs, I have kept my portfolio intact. That approach is consistent with my overall approach of essentially having a permanent portfolio subject to managing it. Stocks represent about 14% of my investment portfolio.

Listed in order of largest to smallest holdings:

KMB (Kimberly Clark)
PEP (Pepsico)
MMM (3M Corp)
PG (Procter & Gamble)
SYY (Sysco)
ADP (Automatic Data Processing)
KFT (Kraft)
BMY (Bristol Myers Squibb)
KO (Coca Cola)

My major asset remain CDs. I don't own a home, though I do think that is OK, as long as one doesn't go into much debt to do so. I have no debt at all, and never want any, though I do think some is OK for a home, especially in the areas which were first to collapse during this Housing decline. I also own US Treasuries, about 7% of my assets. Right now I own inflation protected ones (TIPS). The two I hold are...
2015's
2013's
I like them because they protect both against deflation and moderately against inflation. I also own some gold (coins), but it is only about 3% of my assets and use a safe deposit box to store it. Gold does not qualify as an investment, but I do think it is warranted as a small insurance policy on US currency.

Portfolio - "Investing Approach"

My general approach to investing is:

1. Stocks - I want to think of myself as a businessman, that is, only owning stocks of companies I would like to own completely if I could. As such, I would only want to own a business which offers products or services which will always be in demand in good times or bad. Plus, the products or services are top quality ones and the company is recognized as a great one in its industry. Plus, the company must have a sterling balance sheet, preferably with little or no debt. And, like any business I might own, it must regularly return a good income to me by way of a good dividend which ideally the company regularly raises annually. Hence, one is protected, to a degree, against both deflation and inflation. Obviously, the stock would also offer a reasonable chance of capital appreciation, by way of having a business which offers reasonable growth prospects.

Also, key to stock holdings, are that they must be managed, often adding or subtracting to/from positions as situations merit. Plus, although the goal is to hold a stock forever, as one would a business, a serious adverse situation which faces a company could warrant closing out the position in the stock.

As for speculation, the only way I think it is OK is to buy more of a stock I already own or want to own long-term, thinking it might move up for a short term gain, however since it is a stock I already want to own, worst case is that in case it doesn't go up right away, I just have added to my position at what I think is a cheap price. So, essentially it is a win-win kind of bet, especially as I always recommend keeping some cash in reserve - never being in a situation where I am overloaded with stocks. It should always be remembered that deep and prolonged bear markets are always possible, so stocks by their nature do carry risk. However, one other benefit of considering such trades, is that it keeps the investor more current on stock and market situations, thereby keeping one more informed. Staying informed is key.

Plus, I only want to own companies which I think are in moral businesses. Not tobacco, etc. By doing so, I get some additional feelings of satisfaction. Since there are thousands of stocks from which to pick, I don't see that as a disadvantage.

2. Bonds - I only want US Treasury bonds, notes or bills, the safest of safe. Among them, I might prefer, regular ones which pay fixed interest rate or inflation-protected ones (TIPs), as the situation presents itself. Also, GNMA collaterized debt obligations are OK as they, too, have the full faith and credit of the US government behind them. Like with stocks, positions must be managed.

3. CDs - I only want FDIC (Banks) or NCUA (Credit Unions) insured CDs. Also, I prefer ones of long term duration, mostly five year terms. I do consider these CDs as investments since there is a long-term component to them. However, I also like that they serve the dual purpose as being used as savings, since I only want CDs which have low or reasonable early withdrawal penalties. Again, some protection against both deflation and inflation, plus are liquid investments.

4. Gold or Silver - Not an investment, but reasonable to have a small amount as an insurance policy on our currency. Gold, preferably coins. Silver, preferably pre-1965 90% silver coins.

5. Homes - although I don't own any, it is fine to own one's home, as long as one treats it as a consumer item with only a limited investment component, plus I don't recommend having a large mortgage on it. If a person doesn't have the means to buy a home for cash or maybe 50% cash, he/she should rent, in my opinion. Owning a home has a lot of other costs associated with it, like maintenance, add-ons, etc which many people forget to include when considering buying their home. But, if one just wants to own a home because of choice of lifestyle, therefore recognize it is mostly a consumer purchase. As for buying investment homes, I recommend as a rental property only, using little, if any debt, and which produces net profits which would equal or beat CD rates. Plus, remember, that rental properties mean either being a landlord or paying for a property manager. Being a landlord is a labor-intensive business, so I really only look at it as favorable if a really good opportunity presents itself. As for having a property manager, either way, one of the real risks with rental properties is having tenants which severely damage the property. Therefore, investment homes may sound great, but they come with lots of hidden costs, extra time, and worry - and they are not liquid, sometimes they require a long time to sell.

Portfolio - "Update"

I've altered my stock positions slightly, by adding a small position in SYY (Sysco). It is the top distributor to the food service industry, has a top-notch balance sheet with little debt, and a good dividend which it raises annually. Good dividend-paying stocks have greater value at this time since interest rates have been so low that CD and US Treasury rates are generally less than those for top-notch dividend-paying stocks. Listed in order of largest to smallest holdings.

• KMB (Kimberly Clark)
• PEP (Pepsico)
• PG (Procter & Gamble)
• MMM (3M Corp)
• KO (Coca Cola)
• KFT (Kraft)
• BMY (Bristol Myers Squibb)
• ADP (Automatic Data Processing)
• SYY (Sysco)

My major asset remain CDs. I don't own a home, though I do think that is OK, as long as one doesn't go into much debt to do so. I have no debt at all, and never want any, though I do think some is OK for a home, especially in the areas which were first to collapse during this Housing decline. I also own US Treasuries, about 7% of my assets. Right now I own inflation protected ones (TIPS). The two I hold are...

• 2015's
• 2013's

I like them because they protect both against deflation and moderately against inflation. I also own some gold (coins), but it is only about 3% of my assets and use a safe deposit box to store it. Gold does not qualify as an investment, but I do think it is warranted as a small insurance policy on US currency.