| | | PM mining stocks: why now is the perfect time (charts + historic proof)...
Here's all the reasons why the coming Fed rate cuts and bull steepening of the yield curve
are a no-brainer environment for gold & silver mining stocks... Good article here:
realinvestmentadvice.com
Here's a couple of charts showing the last five yield curve steepening periods and how gold
and silver mining stocks outperform.
The first graph below charts the average returns of 19 assets, stock indices, factors, and sectors during
the five bull steepening periods. The second graph compounds their returns over the five periods.
Past performance over the last five steepening cycles is not a guarantee of future performance,
but it's the next best thing...and as good as it gets.
The hedge funds will always try to washout the weak hands prior to the Fed rate cuts beginning.
Yesterday, was an example, with some solid stocks like HL down -10% in a single day.
There could be another couple of moves prior to the Wed. Sept. 18 Fed meeting where the first cut is
expected. These are buying opps. Likely the last really attractive entry points we'll see for this cycle.
Last October at the beginning of the tax loss selling season was the bottom at GDX 25, it was retested
in late Feb to early March, then PM stocks rallied strongly to GDX 39ish, with two pullbacks, one in June,
one in early August, and one that may be occurring here -- they all bottomed at support around GDX 32-34.
We're at GDX 36.92 today. So, depending what you already own, of whether or not you've established
any significant position, we're still likely within 10-12% of any interim bottom we'll see before the Fed starts
cutting rates, so considering the avg. return of the last few cycles, its close enough not to worry about buying
if you're not already in. Take advantage of any futher pullbacks into, or immediately after the 9/18 Fed meeting.
And here's the most important part....
Don't forget to convert those paper profits into hard assets like solar panels, generators, greenhouses,
a frost-proof well, an outhouse (yeah, an outhouse), a metal roof, ham radios, sat phones, longterm food
storage, a years supply of RX meds, night vision, thermals, high quality self-defense firearms and ammo,
junk silver for barter, gold eagles for savings, and maybe an upgraded overland vehicle, an electric all-terrain
bike, old diesel truck, a motorcycle, or if you play big and win big... farm land, or a bolthole escape pod.
Because win, lose, or draw in Nov. .... it begins.
SOTB |
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