Nick’s Note: In September, we told you that the retail sector was hated and cheap. It’s up 12% since then. Today, my colleague, master trader Jeff Clark, says the setup for gold looks similar to retail. Below, Jeff explains why it’s a good time to add some gold stocks to your portfolio.
By Jeff Clark, editor, Market Minute
The gold sector hit an important low last Tuesday. Conditions are now set up for a gold stock rally for at least the next few weeks.
Of course, it’s hard to be bullish on gold stocks when the sector has done nothing but fall while the rest of the stock market has been hitting new highs almost daily.
So, no one can blame you for being skeptical of an impending gold stock rally. But think about this… Do you remember how retail stocks looked back in late October?
The retail sector was hated by nearly every analyst on Wall Street. The financial television talking heads didn’t have anything good to say.
And while stocks like Macy’s, Dick’s Sporting Goods, and Bed Bath & Beyond were trading at historically low valuations and paying historically high dividends, nobody was willing to buy them.
That was right about the time Skechers reported better-than-expected earnings. The stock popped 40% higher in one day. And I suggested the retail pendulum was starting to swing the other way.
Look at what’s happened to the retail sector since then…
The VanEck Vectors Retail ETF (RTH) is 12% higher today than it was two months ago.
Why is this important to gold stock investors? Because today, the gold sector looks just like the retail sector looked back in October.
In other words… the gold stock pendulum is starting to turn.
Think about it…
The mining sector is the worst-performing group in the entire stock market. It’s hated by nearly every analyst on Wall Street. The financial television talking heads actually laugh at the thought of buying gold stocks. Investor sentiment is about as bearish as I’ve seen it since the bottom of the gold stock bear market back in December of 2015.
Heck, I’ve actually received feedback from more than a few longtime gold bugs who have recently jumped ship in favor of trading bitcoin and other cryptocurrencies.
To me, this feels like a bottom for the gold sector. Or, if it’s not the exact bottom, then it’s pretty darn close to it.
I like the odds of owning gold stocks here. The risk/reward setups look good. The timing looks good. And, from a contrarian point of view, it’s hard to find a more contrarian trade than buying gold stocks.
Best regards and good trading,
Editor, Market Minute
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Bitcoin Breaches $20,000: Earlier this week, bitcoin broke the $20,000 mark before retreating a bit by Tuesday. We expect it to break that milestone again as it marches higher. Here’s why… The launch of bitcoin futures and options markets has opened the door to institutional money and that’s created a snowball effect… As bitcoin’s price goes up, it gets more attention. As it gets more attention, its price goes up. And as price goes up… Well, you get the picture.
First Crypto Index Fund: Bitwise Asset Management says it’s launched the first crypto index fund. Founded in 2017, Bitwise develops funds, indexes, and other financial services. The Bitwise HOLD 10 Private Index Fund holds the top 10 cryptocurrencies weighted by market cap. Instead of buying coins, you buy shares in the index. Now, we don’t know much about this fund, so do your own research… But it’s the latest sign that a flood of institutional money is headed into the cryptocurrency market…
Target Joining Omni-Shopper Trend: Last week, retail giant Target acquired grocery delivery startup Shipt for $550 million. Soon, Target customers will be able to order groceries and other goods online through Shipt and have them delivered to their homes that same day. Regular readers will know this is part of the larger “omni-shopper” trend we wrote about last week. Omni-shoppers shop in-store and online simultaneously. The retail model of the future is a combination of physical and digital storefronts. The companies that will thrive going forward will have both. Target is the latest retailer to jump on this bandwagon.
From Bill B.: Please explain the relationship between Palm Beach Research Group, Bonner & Partners, and Casey Research. I’ve been bombarded with emails from all three encouraging us to sign up for “Casey’s Big Speculation.”
With the creation of Palm Beach Confidential and the folding of some of your more conservative newsletters, you seem to be leaning to more speculative ventures.
That’s not why many of us joined PBRG. Nor did we join to get endless promotions from you and others about new, unproven ventures in publishing.
Editorial Director Lindsey Hough’s Reply: We’re glad you asked about that, Bill. Palm Beach Research Group has a strong relationship with Bonner & Partners and Casey Research. That’s all we can say for now, but I promise you’ll hear a lot more about this relationship during 2018.
For now, please know that we carefully vet every opportunity we present to you and your fellow Daily readers. And that’s especially true of any offer you see from Bonner & Partners or Casey Research.
We understand that speculative services like the ones you mentioned might not be right for you. But here at PBRG, we believe smart speculations—along with things like cash, chaos hedges, real estate, etc.—should be a small part of every balanced portfolio. That’s why we tell you about services following a variety of investment styles.
And if you’d rather not hear about them, there’s a link to unsubscribe at the bottom of every issue. But we hope you stick around…
There are big things setting up in 2018.
Meanwhile, more subscriber feedback about their gains from Teeka Tiwari’s Palm Beach Confidential service…
From Barry W.: Teeka, I’m a 70-year-old retired physician who was a financial disaster. I even lost my retirement plan to fraud. Thanks to you, I’ve profited over $4,500,000—mostly since April 2017.
From M. Sample: I started investing in cryptocurrencies with Teeka in April 2017. In only eight months, I’m up nearly 400%. I purposely didn’t tell my wife because I wanted to surprise her. Well, surprised she is! Now we both are reading Palm Beach Confidential reports and securing our future together.
Just wanting to say thank you to Teeka for helping us navigate cryptos and realize gains we could only dream of!
From Stuart O.: Hi Teeka, I started with your crypto recommendations back in April. Since then, my bitcoin is up more than 13x. Today, I decided to sell a portion of my bitcoin and recover my original investment… plus some for taxes. It feels good to now play with “house” money… not to mention getting family and friends who are “crypto naysayers” off my back. Best regards.
With the holidays fast approaching, how do you plan to use your crypto gains? Gifts, vacations, remodeling? Let us know right here…
This Silicon Valley insider “leaks” the No. 1 investment idea from a private meeting with 34 top tech investors…
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