Company Overview and News
Gold prices kicked off the New Year in great fashion, logged the best January opening since 2013 andtouched its highest since late September. This move was a continuation of the year-end rally that led the precious metal to jump about 4.4% in the last three weeks of 2017. (8-0)
The model portfolio continues to generate profits above projection. Since the last update in November, gains for the long/short design have moderated a bit, but are still zigzagging higher. Absent large losses in the Twenty-First Century Fox (FOXA), AT&T (T), Verizon (VZ), Costco (COST) and Nike (NKE) short sale positions the last two months, this portfolio would be up another 3%. Nevertheless, gains in the longs and steady underperformance of the market by the other shorts have generated another 1% in total profits since my last report. (307-1)
Despite the bullishness in the stock market, gold maintained its sheen this year thanks to geopolitical concerns, instability in Europe and United States as well as lofty stock valuations. This is especially true, as the bullion has risen about 9.2% while the S&P 500 Index has gained 13.2% in the year-to-date time frame. After the fourth consecutive weekly loss, gold price rebounded to a two-week high toward $1,300 per ounce level as uptick in geopolitical uncertainty raised demand for the precious metal as a safe haven. (4-0)
The mock long/short portoflio has outperformed the S&P 500, after expenses, since inception with low uncorrelated daily volatility. (193-1)
China and India – once key buyers of gold – are now seeing a plunge in demand, taking global requirement to its lowest level in seven years. Prices remained high on safe-haven bid, especially emanating from North Korea. This is what dealers in India believe buyers are being discouraged by. (4-0)
Gold prices are glittering again thanks to a subdued greenback and political uncertainty. The largest gold ETF SPDR Gold Shares (GLD - Free Report) has gained about 12% in the year-to-date frame (as of August 11, 2017) and was up about 5.8% in the last one month.
In times of uncertainty, investor demand for safe haven assets rises. Investors flock to safety by dumping riskier assets such as equities (SPY). The safe havens that benefit the most in times of uncertainty include gold (GLD) and U.S. Treasuries (GOVT). After news of escalated tensions between the United States and North Korea hit the markets, riskier assets that have been outperforming in the past month fell dramatically.
Gold prices are back on a rallying mode thanks to subdued greenback and political uncertainty. The largest gold ETF SPDR Gold Shares (GLD - Free Report) has gained about 10.2% in the year-to-date frame (as of July 31, 2017) and was up about 4% in the last one month. Last month’s gain followed gold’s first monthly drop of this year in June (read: Top ETF Stories of July 2017).
Gold prices are back on a rallying mode having returned about 0.7% in the last five days (as of May 23, 2017). The metal was on the wrong end of the Trump-induced market rally at the end of 2016, registering “its second-worst quarter in 18 years.”
Several readers have asked me to explain what a larger hedged portfolio of ideas would look like today. I have mentioned such a design in the majority of my writings. This article outlines a net neutral, for stock market direction, portfolio of blue-chip stocks picked by my Victory Formation system. Basically, it holds a roughly equal dollar amount of short positions to fully offset the longs in the portfolio, and retains a good 20% of net equity in uncorrelated gold/silver positions to hedge equity price swings.
It’s important for investors to know which stocks are closely tied to precious metals and which aren’t. Stocks with higher correlations to precious metals will likely be even more affected by the global indicators that influence precious metals themselves.
It’s crucial to understand which stocks are closely tied to precious metals and which aren’t. Stocks with higher correlations to precious metals will likely be even more affected by the global indicators that influence precious metals themselves.
Gold prices are back on a rallying mode following the Fed’s dovish guidance over the course of policy tightening. The Fed raised the benchmark interest rates by a modest 25 bps to 0.75–1% in the March meeting and forecast three rate hikes for 2017 like it did last December (read: See How ETFs React When Hawks Act Like Doves).
Precious metal investors tend to keep a close eye on how precious metal mining stocks perform. Mining funds such as the leveraged Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Gold (AGQ) rose substantially at the beginning of 2017 due to precious metals’ recent revival. Lately, funds and mining shares suffered.
Precious metal mining stocks are known to closely track the performances of precious metals. Leveraged mining funds like the Direxion Daily Gold Miners (NUGT) and the ProShares Ultra Gold (AGQ) have risen due to the recent revival of precious metals. Mining stocks are often more volatile than precious metals.
2017-12-11 - Wilton
2017-12-11 - Wilton
2017-12-03 - Wilton
2017-11-27 - Wilton