You could call today's chart "great news for owners of gold stocks."
Last month's market decline smashed nearly every kind of resource stock you can think of… oil stocks, copper stocks, iron ore stocks, coal stocks, and agriculture stocks all sold off heavily. Gold stocks, however, have held steady.
Today's chart shows the past two years in the big gold stock fund, GDX. It's one of the largest and most diversified ways to take a position in gold stocks. Big miners Goldcorp, Newmont, Barrick, and AngloGold Ashanti are major holdings in the fund.
This fund suffered a huge decline during the 2008 credit crisis. Then, as predicted in our December 2009 "rebound trade" series, GDX staged a huge rally. And in the upper right of the chart, you'll notice GDX barely budged last month as stocks of all stripes were taken to the woodshed. When an asset as volatile as a gold stock holds steady in the face of widespread selling, it's a bullish sign for the future. Stay long gold stocks.
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