After the market's horrendous performance in May, it's tough to find an asset sitting at a yearly high right now. One of these investment rarities is an asset we've told you about repeatedly in DailyWealth: Gold stocks.
During the market panic of late 2008, we called gold stocks one of the great "rebound trades" you could make to play a market rally. We've also written (here and here) on how gold stocks spent much of 2009 in "cheap mode."
On Friday, the big gold stock fund (GDX) confirmed our bullish thesis by striking a new 2010 high of $54.06 per share… And it's just pennies away from its December 2009 high of $54.78.
As noted in this Growth Stock Wire essay, the gold stock sector is a relatively tiny one… so it doesn't take much interest from big mutual and hedge-fund managers to push the sector to new highs. With gold over $1,200 an ounce now, people are paying even more attention to the precious metal… Expect GDX to continue higher and higher.
No comments:
Post a Comment