(Jay O'Keefe's portfolio, updated thru June 5, 2008 )
 

Major Categories: Stocks  18.0% Physical Commodities  42.9% Cash    39.1%   Stocks include: Very small position in CHFHF (China Foods Ltd) $0.55 Very small position in SA (Seabridge Gold Inc) $21.98 Mid-sized position in SLW (Silver Wheaton Corp) $14.43 Mid-sized position in SSRI (Silver Std Res Inc.) $29.49 Mid-sized position in SU (Suncor Energy Inc.) $67.13 Small position in VGZ (Vista Gold) $3.26 Very small position in AUY (Yamana Gold) $14.93 Small position in USERX (US Global Gold Fund) $16.57 Mid-sized position in VLO (Valero Energy) $49.64 (Click on the stock symbols to go directly to relevant charts.) (Prices listed on the right were as of June 5, 2008.)   Physical commodities include: Physical silver $17.11 (view chart) 24.2% Physical gold $878.0   (view chart) 7.0% Oil and gas production properties 11.7%   Cash is in: (Click on the stock symbols to go directly to relevant charts.) US dollars (money market) 23.7% Australian dollars (FXA) 2.6% Canadian dollars (FXC) 3.1% Swiss Franc (FXF) 2.2% Japanese Yen (FXY) 3.4% Chinese Renminbi bank deposit 2.3% Chinese Renminbi (CNY) 1.8%   Size definitions: Very small = less than 1% Small =  1% - 2.5% Mid-sized = 2.5% - 5% Full =  5% - 10% (except for physical silver)   Jay’s Portfolio Performance: Year to date through May 31, 2008:  +14.3%     Notes: SU split 2 for 1 at the end of May. Bigcharts corrected the chart for this change. Look for Letter 28 soon (God willing) for further discussion of the portfolio, a follow up on gold and silver (important), the stock market outlook, and other topics.

Suggestions for those following the permanent portfolio plan only: Invest 100% of your portfolio in PRPFX (Permanent Portfolio Fund).  For details about this plan see Letter 2.   Suggestions for followers of the permanent & variable portfolio plans: Invest in a permanent portfolio (like PRPFX) the portion of your portfolio you have decided on based on your risk profile. Hold the variable remainder in cash and wait recommendations from Richard Maybury or me (see below), then buy them. (Ignore my allocations on the left side and just focus on the suggestions on the right side.)  It is your decision how much to invest, and whether to buy all at one time or accumulate it over time. Then grit your teeth and wait for the next recommendations. Hold any investment purchased until Maybury or I say to sell it or until you need it for something else.   Suggestions for those following Jay's portfolio plan: Follow what I am doing to the extent you are comfortable with it, using the letters, the above portfolio, and the following guidance. I consider this a good time to dollar cost average into physical gold and silver up to your target positions. I consider the following stocks to all be suitable for accumulation currently … slowly:      - SA (Seabridge Gold Inc)      - SLW (Silver Wheaton Corp)      - SSRI (Silver Standard Resources Inc.)      - VGZ (Vista Gold)      - AUY (Yamana Gold)      - VLO (Valero Energy)          (The sizes of my positions are shown on the left.)          (Click on the stock symbols to go directly to relevant charts.) For greater conservatism and lower risk, you may accumulate USERX (U. S. Global Gold and Precious Metals Fund) instead of individual mining shares. For those wishing to diversify some of their US dollar cash, I consider the following suitable now:      - FXA (Currency Shares Australian)      - FXC (Currency Shares Canadian)      - FXF (Currency Shares Swiss Franc)      - FXY (Currency Shares Japanese Yen)      - CNY (Renminbi / USD ETN) - greater potential, higher risk    Basis for these plans: Three plans mentioned in Richard Maybury's April Early Warning Report (quoted in Letter 22) Jay O'Keefe's explanations in Letter 4 and Letter 7