Another billionaire, Sir R. Allen Stanford of Texas bytes the dust. SEC civil complaint alleges among other charges that Stanford and companies lied about the safety of the Stanford International Bank (SIB) CDs, that they faked historical data of other investments and that they falsely reassured investors that there was no exposure to losses from the Madoff affair. Today federal agents raided the offices of Stanford Financial Group and a U.S. federal judge ordered his assets along with those of his companies frozen and placed into receivership.
At the great risk of alienating all of the gold bugs out there, I hereby solemnly declare that today, February 11, 2009, I sold my entire StreetTracks Gold Trust ETF (GLD) position at $92.87 / share. I bet on gold outperforming by buying into the GLD ETF on 12/30/2004 at $43.80 / share. Now, a little more than 4 years later I got out with a 112% profit (not accounting for commissions).