Contrarian Alert: GOLD Trade Offers Attractive Risk/Reward
Investors ran for cover last week after the bulls’ confidence was rattled by the Fed, which hinted at scaling back on their bond-repurchases earlier than many were anticipating. Profit-taking pressures hit equity markets overseas and at home as fading stimulus hopes prompted a sell-off ahead of the prolonged holiday weekend for Wall Street; nonetheless, investors appear to be back on the scene in a bargain buying mood as major U.S. indexes have managed to snap back and appear to be well on their way to resuming the uptrend at hand [for more commodity futures news and analysis subscribe to our free newsletter]. Gold prices and producers of the yellow metal remain severely depressed as momentum has failed to return to the precious metals market following the steep sell-off seen earlier in April. Contrarian investors should add Randgold Resources (GOLD) to their watchlist because this mining behemoth is resting on major historical support, … See the full story here
Will a Euro Collapse Wreck Your Commodities Allocation?
It seems that the collapse of the euro, and possibly a global financial market correction, has become more likely than not in the next few year. It started with the fiscal disaster otherwise known as Greece, which has public debt equal to 166% of total GDP. But as time went on, Spain, Italy, Portugal, and Ireland all joined the race, with the latter four nations all faced with debts totaling to more than 100% of GDP (and let’s not even think about France’s 87% ratio of the same caliber) [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].
