Bonus Special Report: Where to Park Your Cash

Bonus Special Report: Where to Park Your Cash

The advice is sound, very sound. Move part (at least of your portfolio to cash and sit out the worst of this bear market on the sidelines. And since you have that cash in hand, you’ll be ready to snap up bargains when the market has put in a bottom (or near the bottom, or on the way up from the bottom…or something.) But right now that’s easier said than done.

Trick or Trend: Even gold, utilities, and drug stocks aren’t providing much downside protection now

Gold draws near even for the year, approaches resistance

Gold closed up today, May 24, by 0.27% to $1884.00 an ounce for August delivery on the COMEX. That took the metal to its highest price since its January 5 high for 2021 at $1954. The rally in gold from a March 8 low at $1678 an ounce, has not only brought gold near breakeven for 2021, but is pressing against resistance near $1900 an ounce. Gold has posted three straight weekly gains. No secret what’s been driving gold higher: fears of rising inflation.

Wheaton Precious Metals hikes dividend by 30%

Wheaton Precious Metals hikes dividend by 30%

Before you get too excited by that headline, note that a 30% hike in the dividend at Wheaton Precious Metals (WPM) will bring the payout to just 13 cents for the first quarter of 2021. But that’s still, as my grandmother used to say, better than a poke in the eye with a sharp stick. At the least it’s a vote of confidence by the company’s board of directors that they see strong revenue and earnings growth in the year ahead. Wheaton Precious Metals doesn’t actually do any mining itself. Instead it purchases a stream of production from miners of precious metals and cobalt.

A wild day for stock gains–although you wouldn’t know it from the indexes

A wild day for stock gains–although you wouldn’t know it from the indexes

At the close today the Standard & Poor’s 500 was down 0.19%. The Dow Jones Industrial Average ended dead even. The NASDAQ Composite “soared” 0.07%. It wasn’t until you looked at the Russell 2000 small cap index that you saw any signs of what a wild day it was. That index, so economically sensitive these days, finished ahead 2.04%. Don’t look to the usual suspects if you’re seeking big winners today.

COPX Pick #8 for my new Millennial Portfolio (for investors who have more time than money)

COPX Pick #8 for my new Millennial Portfolio (for investors who have more time than money)

In today’s YouTube Video “Avoiding Di-Worsification in 2021 in argued that the trend toward high yields on long-dated Treasuries–and thus lower prices for those bonds–should prompt investors to look beyond bonds and gold in their efforts to build diversified portfolios. I’m adding a copper miners ETF to my Millennial Portfolio tomorrow as a replacement for gold and to profit from the increased copper demand resulting from larger numbers of electric cars on the road over the next decade

Market sees fourth quarter GDP slowdown as good news

Market sees fourth quarter GDP slowdown as good news

U.S. GDP growth slowed in the fourth quarter, gaining just 1% from the third quarter. For the full year the U.S. economy contracted by 3.5%. That makes 2020 the first time that the economy has contracted for a full year since 2009 and the Great Recession. At the bottom of that recession that economy contracted by 2.5%. 2020 is also the worst year for economic growth since 1946 when the economy shrank by 11.6% as the country demobilized after World War II. Consumer spending slowed in all 15 categories tracked by the Bureau of Economic Analysis. The sectors that had powered the recovery in the third quarter–restaurants and hotels, for instance–reversed. The growth in spending on cars and health car also slowed from the acceleration in the third quarter. So why is this good news as far as the stock market is concerned?

Trick or Trend: Even gold, utilities, and drug stocks aren’t providing much downside protection now

Gold is behaving like Biden stimulus is on its way

Gold futures on the COMEX for February delivery closed up 1.4% today, January 20, at $1866.50 an ounce. That’s the highest finished for the most active contract on the futures market since January 7. Silver for March delivery closed up 1.8% to $25.766 an ounce. All the talk about the need for a big stimulus program, bigger even than in response to the global financial crisis and the Great Recession, has sent some traders looking for inflation plays.

Finding 5 clues for tomorrow in today’s stock market action

Finding 5 clues for tomorrow in today’s stock market action

Yes, the big indexes were down today, January 4, with the Standard & Poor’s 500 off 1.48% at the close; the Dow Jones Industrial Average down 1.25%; and the NASDAQ Composite lower by 1.47%. But I think we can find some clues about tomorrow’s action–and the moves over the next month or more–from taking a look at individual stocks and sectors.