Tuesday , 21 May 2024

It's Time to Get "All In"! Here's Why

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Brockie went on to say, in part:

The bull may be down, but it’s certainly not out. Now is the time to take the bull by the horns, without hesitation, or you’re sure to miss out making big gains over the next few months.

While the media continues to obsess about the “Fiscal Cliff,” safe haven assets like the US dollar and US treasuries have been setting bearish patterns of lower highs. If an equity plunge were truly imminent, the dollar and treasuries would be trending the other direction. Over the next few weeks, therefore, we can expect:

  • the U.S. dollar to drop and money to begin flooding out of the over-bought U.S. Treasury market and into stocks of all varieties.
  • the exit from treasuries to continue to push equity markets higher since the US treasury market dwarfs the equity markets in size and
  • the commodity sector to offer relative strength since commodity companies have declined the most in percentage terms, and because they benefit from a weaker dollar.

Even more compelling is that:

  • many commodity-related funds have set three year lows over the past few months and have been setting bullish patterns of higher lows [of late and] while this was happening,
  • corporate insiders have been aggressively buying shares in their own companies. Corporate executives have a great track record of buying low and when they’re willing to risk their own personal money to invest in their own companies, it’s generally wise to follow their lead.

Recommended Course of Action

Gold is perfectly set to take another serious run at $2,000/ounce in 2013, but instead of buying the metal itself via a gold ETF, I suggest focusing on gold stocks….Gold stocks are historically undervalued relative to the price of the metal….and the two largest gold producers in the world, Barrick Gold and Newmont Mining, are currently trading at approximately 60% of the value of their gold reserves. This data gives us a great opportunity to buy low so we can sell high later.

I also believe the gold mining fund, GDXJ, is presently a best buy below $21 and will likely yield a return of more than 30% by spring and, if GDXJ were to regain its 52-week high, the gain would be 45% from today’s levels.


My investment clients are up 29% year-to-date and I expect the next two to six months, as the bull market that began in 2009 makes one last “unexpected” wild rally, will be even more profitable, which is why this hedge fund manager is “all in” for the commodity rally.

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*http://seekingalpha.com/article/1019591-take-the-bull-by-the-horns-now **http://seekingalpha.com/article/1064081-this-hedge-fund-is-all-in-for-the-commodity-rally