| | | | | Tuesday, October 13, 2015 | |
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Tech Disaster Turns Into HUGE Profits
You might remember a hacking scandal that rocked the Internet last summer. It caused ripples in the stock market that sent several stocks into the gutter. But there was one that actually paid out HUGE gains thanks to this "disaster."
The company name, the gains made and the reason you could have turned this scandal into a massive payday are all included right here in this exclusive presentation.
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Eric Fry, wearing his "rally cap" for the precious metals, reports...
Gold and gold stocks have been losers for so many years that almost no one can imagine them being winners... even when they're winning right under everyone's nose!
During the last three months, gold has managed to advance about 6%, while the PHLX Gold and Silver Sector (XAU) has jumped about 12%. That's winning... especially when you remember that the major U.S. stock market averages have dropped about 5% during the same time frame.
But the funny thing about trend reversals is they often occur so subtly and unexpectedly that they do not become "obvious" until well after the fact.
Even if gold and gold shares continue trending higher for the next several months, most investors will still think of them as "losing investments."
To be fair, the recent winnings in the precious metals sector have been very modest relative to the sizable losses they'd amassed since 2012. And the recent losses in the U.S. stock market have been very modest relative to the sizable gains they'd amassed since 2012.
If we look back three years, rather than three months, we see that the S&P 500 Index has soared 50%, while gold has slumped 33% and the XAU Index has tumbled 70%.
In other words, gold has been losing... big time.
But financial markets are cyclical creatures. Gold will not lose forever and stocks will not win forever. Their respective fates will change... at least to some extent.
In fact, if our recent musings in The Non-Dollar Report are on target, gold's fate is already in the process of changing. In the September 24 edition, Sean Brodrick presented "Three Reasons to Buy Gold Right Now."
Four days later, I followed up Sean's bullish remarks on gold with a few bullish remarks of my own. In a posting titled "Field of (Broken) Dreams," I suggested that investors "should consider selling a biotech stock and buying a gold stock."
"The stock market is often more about poetry than mathematics," I observed. "And poetically speaking, investors have spent the last few years writing love sonnets to biotech stocks, while utterly ignoring gold mining stocks. These opposing passions have elevated biotech stock valuations to the heavens, while kicking gold stock valuations into the gutter.
"... [G]old mining stocks have rarely been as depressed as they are today," I continued. "Therefore, we predict investors will have a change of heart... eventually... Their contempt for gold mining stocks will moderate... and then reverse completely."
Sean Brodrick believes that moment has arrived. He thinks a major trend reversal in the gold market is underway at this very moment.
So he returns today to pound the table on gold once again...
The One Stock You Need in Today's Risky Markets
If there's only one stock you buy now, this ought to be it...
An under-the-radar American firm that's just cracked the biggest scientific breakthrough of your lifetime.
It's a patented medical treatment that could allow millions of Americans to add 15 years to their lifespans.
Board-certified doctors in New York say, "It's a whole new ballgame."
Because of this treatment, the company is set to collect as much as $30.2 BILLION in revenue.
Click here to see the cure for yourself.
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The Golden Hour Is Here
We are speeding headlong toward an hour that the gold market has been waiting for... for four long years.
It's the Golden Hour.
When it comes, the death grip the bears have had on the gold market for four years will finally be broken... shattered into a million pieces.
Shorts will be forced to cover... new longs will pile in... and the gold market will surge higher.
And here's the thing: That golden hour is close. You can tell by looking at a chart of gold through the end of last week...
You can see on this weekly chart that gold is making a series of higher lows. What's more, the "up" bullish days are on higher volume.
Every attempt gold has made to push above $1,160 has been met with selling... so far. But let's say that gold pulls back to its recent uptrend. Fine! That gives everyone a chance to buy on the cheap again.
As long as gold keeps making higher lows and the volume stays good, I'm positive on the yellow metal. And if gold closes above $1,160, I'm positive it's going to flirt with $1,200.
And such a move would be a wake-up call for the market. Those who were hoping to buy gold below $1,000 will have to change their plans. The days of cheap gold will be over. The golden hour will be at hand.
What's going to push gold higher?
A weaker U.S. dollar, for one thing...
U.S. Dollar Weakness
I've been tracking the U.S. dollar, too. And boy, is it looking weak. The U.S. Dollar Index has been in a decline since March. It's fallen below important support. The next step down could be a doozy.
And since gold is priced in dollars, as the dollar goes lower, gold tends to go higher. It's what I call "the seesaw of pain." One profits, the other gets punished.
Wait, wait! I thought the U.S. dollar was super-strong!
Well, it was for a while. But the Fed has been promising that it will hike interest rates for so long - and then putting a hike off again and again - that, like too-often-jilted suitors, traders are starting to lose faith.
Will the Fed raise rates? I say, not this year! And maybe not until well into next year. Here's why...
The Fed says one of the things it is looking for is an inflation rate of 2%. According to the Fed's own forecasts, it doesn't expect to see inflation that high until 2018!
3.3 Trillion Reasons
And frankly, I think the Fed is afraid to raise rates. Not because of what it will do to the U.S. Instead, the big fear is the ripple effect it will have in the emerging markets.
Banks and other corporations in emerging markets have overborrowed by $3.3 trillion in the last decade, according to the International Monetary Fund. A shocking amount of this debt is in U.S. dollars.
And yet it's harder for companies in emerging markets to pay U.S. dollar debts because their own currencies have fallen hard. The average emerging market currency is down 15% since the start of the year, according to Bloomberg data.
So if the Fed starts raising interest rates and the dollar moves higher once again, we could see dominoes fall across the Pacific Rim.
But no rate hike means easy money... and gold thrives in that environment.
Now add in the other forces that are lining up to push gold higher: seasonal strength... renewed buying in China... tight mine supply.
How You Can Play This Move
Heck, I think the yellow metal could be on the launch pad. The countdown to the Golden Hour is on.
Gold will rocket. And select miners could be moon shots!
A great way to play the coming move would be through an ETF like the Sprott Gold Miners ETF (NYSE: SGDM). Like gold, it recently broke out. Now it will test support. The next rally is coming. Be on board before it blasts off.
All the best,
Sean Brodrick
For The Non-Dollar Report |
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