| You can smell the fear in the market. |
| Whenever CNBC trots out a perma-bull to console its audience, and that analyst says investors have to resign themselves to stock market gains far less than the last two years, you know things are getting serious.
As I write, the Dow is off over 950 points (over 2.2%), the S&P 500 has shed 3.0%...and the Nasdaq has plummeted an amazing 785 points (4.3%). Bitcoin has once again proven to be no safe haven, crashing over 5% so far on the day.
The one-month chart of the Dow Industrials shows that this isn’t a one-off sell-off, but rather a trend that’s been in place for a couple of weeks. |
| As you can see, the Dow trendline is now perilously close — just one trading session at this rate — from breaking through strong support at around 41,685. There’s lots of air below that point.
Yes, gold is down as well. Precisely 0.85% as I write.
In other words, gold is outperforming all other sectors even as liquidity is vanishing from the markets. Consider this important chart, with data as of last Friday and not factoring in today’s stellar relative performance from gold: |
| As you can see, the gold/S&P ratio has just broken through the post-Covid resistance line. Money is beginning to move from the broader stock market into gold and gold stocks.
And remember: The metals and miners are tiny compared against the broader markets. Just a relatively small shift in allocations toward these micro-sectors would send values exploding higher. |
| The Gold Stocks Are Once Again Leveraging Gold |
| And speaking of gold stocks, the trend has turned positive here as well. After a short period when the equities were leveraging gold to the downside, they are once again providing torque to gold on the rebound.
Consider this chart of the GDX gold miner index to gold ratio: |
| Once again, investors are turning to the gold stocks as a way to leverage the bullish thesis on gold.
There’s even better news for those of us invested in the high-potential junior resource stock sector.
I just returned from two big mining conferences in Toronto, and the sentiment was turning positive in a major way. There’s a feeling of “FOMO” (fear of missing out) in the air...people are rushing into the best opportunities...and share prices are starting to take off. |
| One example: Even in the midst of the market-wide sell-off, one of our recent Gold Newsletter recommendations is up 17% today alone! |
| We’re jumping on this opportunity in a big way. In our recently released March issue, I unveiled two new red-hot stock picks. And in our Gold Newsletter Alert service, I added two more premier picks last Friday.
Things are moving quickly now, and if you don’t get positioned soon for this dramatic shift from the broad stock and bond markets into gold, silver and mining stocks, you could be missing out on a generational opportunity.
My advice: If you aren’t already a subscriber to Gold Newsletter, click on the link below to solve that problem now! |
| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference |
| CLICK HERE
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