|Bid||34.69 x 1300|
|Ask||34.70 x 800|
|Day's Range||34.12 - 34.87|
|52 Week Range||16.18 - 37.49|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||14.72%|
|Beta (5Y Monthly)||0.91|
|Expense Ratio (net)||0.53%|
Each week I try to identify a key theme that defined the movement in stock prices over the past 5 days. But unlike many investors, my searching isn't based on news, it's based on price.The charts tell the tale, if investors are keen to listen. This week's exercise revealed clear rotation going on beneath the market's surface, and directed me to these top trades for your consideration.The first part of the shift was money flowing out of leaders and into laggards. Large-caps have long been leading the market recovery, while small-caps have lagged.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut not this week! The switcheroo saw little guys pick up the torch and lead their bigger brethren to victory. As of Thursday's close, the S&P 500 was only up 3% but the iShares Russell 2000 ETF (NYSEARCA:IWM), which represents small-caps, was up 7.3%.The second shift is partially related to the first. Stocks benefiting from the novel coronavirus saw profit-taking while economically sensitive equities (like small-caps) surged. That's a welcome development that points to risk appetite continuing its return. * 7 Excellent Penny Stocks Ready to Roar Here's the silver lining. If you've been waiting for a dip before buying companies outperforming during the Covid-19 crisis, then here's your chance. These three stocks have attractive setups that make them top trades for the week: * Netflix (NASDAQ:NFLX) * Citrix Systems (NASDAQ:CTXS) * Newmont Mining(NYSE:NEM)Let's take a closer look at their respective pullbacks and build trades to profit. 3 Top Trades for the Week Ahead: Netflix (NFLX)Source: The thinkorswim® platform from TD Ameritrade Netflix is the type of no-brainer stock that should leave investors who didn't buy during the March crash kicking themselves. NFLX was bound to do well during a time when content-hungry consumers were ordered to stay home.Netflix was one of the first stocks to recover and has since gone on to record highs. This week's rotation saw profit-taking strike the streaming king even as the rest of the market rallied.The pullback tested the rising 20-day moving average and held on Thursday. But even if the stock dips further, I think you have to view the weakness as a golden opportunity to get in on one of the top trades in the market at lower prices. Since it's always wise to have a plan in case you're wrong, I suggest watching $400 or the 50-day moving average as your line in the sand. If we push below that, then I'd change my bullish tune.Its higher price tag makes NFLX stock a great candidate for bull put spreads. We can create a wide profit zone in case the retreat continues before buyers emerge.The Trade: Sell the June $395/$300 bull put spread for around 90 cents. Citrix Systems (CTXS)Source: The thinkorswim® platform from TD Ameritrade Citrix Systems has been among those tech stocks seriously benefiting from the work from home trend. Its share price was up 40% year-to-date before the recent drop.This week's selling did inflict damage to the overall trend by jamming shares below the 50-day moving average. It's the deepest retreat we've seen in CTXS since March, so I suspect some would-be buyers are hesitant.The reason I don't mind putting money to work here is twofold. First, we can wait for the stock to return above the 50-day before pulling the trigger. That will invalidate the breakdown and return CTXS stock to a healthy status.Second, the underlying themes driving CTXS haven't changed this week. And that makes me believe this is a simple correction, rather than the beginning of a trend-ending sell-off. We can deploy a strategy that gives the stock some room to flounder and still profit. * 7 Excellent Penny Stocks Ready to Roar The Trade: Sell the June $125/$120 bull put spread for 70 cents. CTXS options aren't that liquid, so you must use limit orders. Newmont Mining (NEM)Source: The thinkorswim® platform from TD Ameritrade Gold and gold stocks have been on fire this year. Economic upheaval and the printing of trillions of dollars is breathing new life into the bullish thesis for owning precious metal related products. And the Vaneck Vectors Gold Miners ETF (NYSEARCA:GDX) has more than doubled from March lows.As one of the largest players in the space, Newmont Mining has been riding the rising tide. It even came within a whisper of all-time highs, which is incredible given that the sector fund (GDX) is still 50% off its peak.NEM stock's leadership makes it a top trade pick if you're looking for exposure to the yellow metal. Buying an outperforming stock in an outperforming sector means you're betting on the strongest possible candidate.This week's rotation saw profit-taking strike and is creating a classic buy-the-dip opportunity. Every pullback this year has been a great chance to buy, and I see no reason why we should view this one differently. If you want to increase your odds of success, I like selling naked puts. You're essentially getting paid for your willingness to acquire the stock.The Trade: Sell the June $60 put for around $1.45.For a free trial to the best trading community on the planet and Tyler's current home, click here! As of this writing, Tyler didn't hold positions in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Top Trades As We Head Into the Last Week of May appeared first on InvestorPlace.
In 2020, one of the most trusted asset classes has possibly been gold, with the shiny metal up about 13%. One way to play the recent gold rush is a leveraged exchange traded fund, such the Direxion Daily Jr. Gold Miners Bull 2X ETF (NYSEARCA:JNUG). Year-to-date, JNUG stock is down about 87%.Source: Shutterstock JNUG tracks the MVIS Global Junior Gold Miners Index (MVGDXJ). And it seeks a 200% or -200%, i.e., 2X, of the return of this benchmark index for a single day. This daily leverage gives JNUG certain characteristics that may make it a rather inappropriate long-term holding for most retail investors.Let's see why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips JNUG Stock is a Leveraged ETF (LTEF)Many investors are familiar with a wide range of exchange traded funds that enable them to track the price of the commodity. Examples include the SPDR Gold Shares (NYSEARCA:GLD) or SPDR Gold MiniShares SPDR Gold MiniShares (NYSEARCA:GLDM). Year-to-date, they are up 14% each.There are also investment funds that invest in various miners, such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) or the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). In 2020, they are up 23% and 12% respectively. * 7 Excellent Penny Stocks Ready to RoarIt is important to remember that JNUG stock is a leveraged exchange traded fund (LTEF). Two of the most popular LTEFs include JNUG and the Direxion Daily Gold Miners Bull 2X ETF (NYSEARCA:NUGT). And leverage makes the long-term performance of both JNUG and NUGT differ than the performance of the underlying assets. Similar to JNUG stock, NUGT is also down 55% so far in the year.Put another way, although GLD, GLDM, GDX and GDXY are up considerably so far in 2020, the same is not true for either JNUG or NUGT. Similarly, MVGDXJ, the index that JNUG tracks is up 13% in 2020.Over the past five months, these leveraged exchange-traded funds have not at all performed like the ETFs that track either the commodity of various gold miners.This discrepancy in long-term returns is due to the daily leverage used. How Leveraged ETFs WorkA 2X leveraged ETF like JNUG stock is structured to be constantly 2X leveraged on a daily basis. This 2X long LTEF needs to buy every day underlying asset prices go up, and sell when they go down.The leverage is achieved through the use of rather sophisticated financial instruments, such as swaps, futures, and options. However, the daily resetting involved in JNUG stock is rather complex and makes it a no-go as a long-term holding. The compounding effects of daily returns work against long-term investors.JNUG stock also has a "bear inverse" ETF, i.e., Direxion Daily Jr. Gold Miners Bear 2X ETF (NYSEARCA:JDST). Simply stated, JNUG stock is 2X bull and JDST stock is 2X bear.Let's compare the performance of both indices as of March 31, 2020: * 5-year return: JNUG -52.90% and JDST -80.37% (i.e., both returns are negative) * 3-year return: JNUG -68.8% and JDST -63.7% (i.e., both returns are negative) * 1-year return: JNUG -92.0% and JDST down -92.8% (i.e., both returns are negative)In theory, short-term (possibly day) traders could consider JNUG stock to go long smaller gold miners and JDST to go short.But looking at the performance over time, long-term traders should not consider JNUG stock to go long. Instead it looks as a vehicle of wealth destruction. How is that possible?Let's see an example. For example, if the underlying index MVGDXJ moves down 5% on a given day, then JNUG stock should move down 10%. If we assume a stock price of $10, JNUG should be down to about $9 after the first day.On the second day, if the MVGDXJ moves up 5%, over the two days the MVGDXJ return will be -0.25%. A long-term retail investor may think JNUG should be down 0.5%. Yet, the 10% increase on day two will bring shares up from $9 to $9.90, and the JNUG stock would, in reality, be down by 1%.And any investor who holds these leveraged ETFs for a long-period will find out that his or her capital would eventually be eaten up by this volatility and daily re-balancing. Thus JNUG stock can only be appropriate for experienced short-term traders looking for leverage and volatility. The Bottom Line on JNUG StockBefore you decide to buy leveraged ETFs, such as JNUG stock, it'd be extremely important to understand how they work, with an emphasis on their drawbacks. The use of leverage as well as volatility give their unique properties to these funds. Gold is quite a volatile commodity, and gold miners are a leveraged play on gold prices.Therefore, the long run returns of a 2X ETF like JNUG stock are rather dangerous and unpredictable. Even if the underlying index moves in favor of the LTEF, JNUG stock might still lose considerable value over the long term.As you increase your knowledge base on these leveraged exchange-traded funds, you may quickly realize that LETFs are likely to be more appropriate for professional traders for hedging purposes than buy-and-hold retail investors.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Be Careful Using Leveraged JNUG Stock to Buy Gold appeared first on InvestorPlace.
Newmont Mining (NYSE:NEM) has been on fire, and why shouldn't it? While gold prices have been quiet lately, they won't stay that way forever. The backdrop for the yellow metal is bullish. Therefore, the backdrop for NEM stock is bullish, too.Source: Piotr Swat/Shutterstock But let's not pretend that the company hasn't already seen a big boost. Once the dust settled in March, gold prices rebounded with a vengeance. NEM did as well, as did Barrick Gold (NYSE:GOLD), another company we are bullish on.Although Newmont stock has dipped slightly from the new highs it made earlier this year, shares are still up 100% from the March lows. For 2020, Newmont is up 46%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Gold as a HedgeWhen the novel coronavirus sucker punched the global economy, central banks had to act quickly. They needed a coordinated effort to stave off a global depression and buy us some time until we had more resources. Governments, economies, hospitals and people needed more time, ventilators and information, among other things. * 7 Excellent Penny Stocks Ready to Roar This forced the Federal Reserve, European Central Bank, and the rest to fire up the printing presses. They slashed interest rates, made cash appear overnight, stepped into credit markets and kickstarted what Paul Tudor Jones called the "Great Monetary Inflation."Known on the Street as PTJ, the legendary trader expanded on the topic, saying this is "an unprecedented expansion of every form of money unlike anything the developed world has ever seen."As a result, he scoped out gold, Treasuries, and even bitcoin. I personally prefer crypto assets to the yellow metal, but it doesn't hurt to have some exposure to the latter in one's portfolio. Tudor Jones even said bitcoin reminds him of gold in the 1970s.One of his reasons for betting on bitcoin is that it's the "fastest horse" in the group -- and we know that to be true with its volatility. But the point is still the same: global central banks will drive up the prices of others assets, gold included. NEM Stock as a BuyNewmont Mining reported earnings earlier this month. Despite coming into the print at its year-to-date high, NEM stock barely flinched despite missing on earnings and revenue expectations.However, the misses were minimal and growth expectations remain strong. Earnings of 40 cents per share missed by 2 cents, while revenue of $2.58 billion exploded higher by 43.3%, although missed estimates by $80 million.For the year, analysts expect Newmont to earn $2.29 per share. In that scenario, that's up more than 73% year-over-year. Those estimates are also up over the last seven, 30 and 90 days, where they stood at $2.25 per share, $2.11 per share, and $1.92 per share, respectively. Click to EnlargeA company with growing earnings expectations in 2020? That puts NEM stock in a category with few participants. In 2021, consensus estimates call for another year of robust earnings growth, at 37%. Revenue growth estimates in those two years stand at 13.4% and 7%, respectively.However, there is a hiccup in there. Management expects Q2 (the upcoming quarter) to be its highest cost and lowest production quarter. So there could be a dip over the next few months. If that's the case, investors may be wise to nibble some NEM stock.That's after management maintained its long-term outlook. They also said expenses should improve through 2024, alongside stable production. Risks and AlternativesThere are many reasons to be bullish on gold, and thus bullish on gold stocks. However, that doesn't mean it comes without risk.Gold prices and gold stocks were hit in March, when an unprecedented decline and increase in volatility hit equity markets. This put pressure on precious metals, cryptocurrencies and fixed income, too. Investors were forced to sell assets -- high quality or low -- in order to meet their obligations.So NEM stock, GOLD stock, and gold prices are not immune to this price action should it arise again.Additionally, gold may not trade in the manner that investors expect. While gold seems like a no-brainer here -- with investors needing just one difficult trait called patience -- it's possible that it doesn't behave the way we expect.For those that can't decide between which gold stocks to buy, they can also consider owning the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX). The top holding in this case is NEM stock, followed by Barrick Gold. Between the two, they make up roughly 30% on the fund.At the end of the day, though, NEM stock should continue higher. It's got great growth prospects.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Newmont Mining Should Ride Higher With Gold Prices appeared first on InvestorPlace.
The SPDR Gold Trust (NYSEARCA:GLD) is on a hot streak so far this year. The related gold mining stocks and funds such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) are enjoying even greater gains. The GLD ETF is up 13.5% year-to-date, and 35% over the past 12 months. Meanwhile, the GDX gold mining ETF has posted huge returns. It's up 22% year-to-date, and 75% since last May.Source: Shutterstock Naturally, some traders are thinking about taking profits here. It's been a big move, after all. But don't miss the forest for the trees. Gold traders are used to the bear market that had been running in precious metals since 2012. Thus, their inclination has been to sell every advance.But the trend has changed. Gold is in a new expansion phase, and investors should be strapped in for the ride. In fact, precious metals were already in an uptrend even prior to 2020. And now, the novel coronavirus has greatly accelerated that dynamic.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GDX and Gold Mining Stocks: It's 2008 All Over AgainEven as the financial crisis was already well under way, in 2008, the price of gold soared to an all-time high of $1,000 an ounce. To many investors, that record-high price probably seemed like an ideal opportunity to sell. When other things are plunging, the first instinct might be to sell the asset that has appreciated. But even at $1,000 an ounce, it was as actually a great time to buy. Gold's price nearly doubled over the following three years and rose to $1,900 an ounce in 2011. * 7 Excellent Penny Stocks Ready to Roar Today's gold market feels eerily similar to the 2008 version. The price of gold just hit a seven-year high of $1,747 an ounce and is setting up for what I believe will be a rapid double over the next couple of years.This rally is causing a huge ripple effect in gold mining stocks like GDX. In fact, almost all of my gold stock recommendations have doubled already. But I think they're just getting warmed up. The current economic crisis has created a perfect situation for the gold mining industry. Even in Recession, Gold Miners Can Grow EarningsOne key point to consider is that almost every stock market sector will being delivering negative earnings growth over the next several quarters. One sector that will not be following this downtrend is the gold mining sector. It will be producing strong year-over-year growth - perhaps even the strongest growth of any major sector.To give one example of how this is already playing out, look at mining giant Newmont Mining's (NYSE:NEM) earnings report from earlier this month. Newmont reported that revenues soared 43%, EBITDA surged 63%, and adjusted net income nearly doubled.Gold miners enjoy tremendous margin expansion as the price of gold soars. Newmont proved that out with income surging far more than revenues, and we're seeing similar trends out of other miners this earnings season.The low price of oil offers another huge tailwind for the mining firms. Investors complained that mining stocks didn't capitalize as much on the 2003-2011 gold price boom as they would have expected. However, earnings growth was capped because there was huge commodity price inflation at the same time. Remember that oil shot up to as much as $147 a barrel during that period. Other things you need to build mines, like steel, also surged in price. Thus, while miners could sell gold for far higher prices, they lost much of those gains to inflation.This time around, other commodities are dirt cheap. For example, diesel fuel for mining trucks is near 20-year lows. Steel prices have dropped. There's no labor inflation either; after nearly a decade of low gold and silver prices, there is no shortage of capable geologists willing to work for reasonable wages. Gold Mining Stocks VerdictLong story short, this could be the start a golden age for precious metals miners and GDX. In many ways, this resembles 2008. The ingredients are there to set off a major run in the price of gold. Don't look at $1,700 an ounce as expensive -- it could be just the beginning of a major multiyear move to far higher price levels.Meanwhile, gold miners are ideally positioned heading into this surge. Few have hedged their production heavily, leaving more upside as prices surge. Cost inflation is minimal. And the aggressive monetary stimulus being used to fight the coronavirus recession should provide a sustained flight-to-safety trade along with a demand for inflation hedges.As we get past the virus and start to consider the long-term economic impacts, there will be more concern about inflation. The amount of central bank stimulus put into the economy is unprecedented, and it will boost asset prices. Gold mining stocks should be one of the biggest beneficiaries in coming months and years.P.S. Where Did All the Gold Go? Billionaires like "Bond King" Jeffrey Gundlach… Ray Dalio… Stanley Druckenmiller… and Paul Tudor Jones are bullish on the yellow metal…78-year-old billionaire investor Sam Zell just bought gold for the first time in his life! What do they know that the average person doesn't? What does this mean for the future of the economy?I think you'll be surprised when you see. Click here to see the full story.Eric Fry is an award-winning stock picker with numerous "10-bagger" calls -- in good markets AND bad. Eric does not own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Bull Run in the Gold Miners ETF Is Just Getting Started appeared first on InvestorPlace.
We're in unprecedented times thanks to the novel coronavirus. That goes double for investors, as they try to figure out what stocks and assets are worth owning at this stage of the game. With gold always a fixture, are gold stocks worth owning at this point?Source: Shutterstock That answer really depends on the situation.Overall, I am bullish on gold, but there are doubts. With so many other investors watching the yellow metal and seemingly bullish on it as well, it's a bit concerning. Anytime there is too much focus on one asset or stock is exactly when it seems to disappoint the majority.InvestorPlace - Stock Market News, Stock Advice & Trading Tips It All Starts With GoldBefore we talk about gold stocks, we have to talk about gold. Because you can't be bullish or bearish on the group without having an opinion on the metal first. It's like judging energy producers without having studying oil. The commodity drives the miners' business, so we better have a thesis on the yellow metal. * 20 Stocks to Buy If You're Still Betting on America to Thrive Under the current circumstances, how can we not like gold? First, gold is viewed as a safe haven, along with bonds. But with bonds paying so little in the way of interest -- 10-year Treasury bonds yield just 0.65% -- gold may start to get more attention.Rather than simply speculate on safe-haven plays, there's another reason to like gold. The Federal Reserve, European Central Bank, and global central banks around the world are resorting to stimulus to offset economic setbacks from the coronavirus.When central banks print money, it devalues the currencies' worth. Thus, it makes assets like gold more valuable. It won't happen overnight, but as the Fed and others look to stimulate, it seems like gold will have to be an eventual beneficiary. One of Wall Street's most famed traders agrees too -- well, sort of.Paul Tudor Jones recently warmed up to bitcoin, saying the currency reminds him of gold a few decades ago. He said:It has happened globally with such speed that even a market veteran like myself was left speechless…We are witnessing the Great Monetary Inflation -- an unprecedented expansion of every form of money unlike anything the developed world has ever seen.He considered gold, Treasuries, and certain stocks. In the end he settled on bitcoin, which he referred to as the "fastest horse" in the group. How to Play Gold Stocks Click to EnlargeInvestors have essentially three takeaways with gold.First, they can be bullish on the yellow metal, believing it will act as a safe haven in our current environment and as a store of value as central banks pump out cash. Second, they can bearish, believing that those are not worthy catalysts or that too many eyes are on the metal.Finally, they can be without opinion, opting to pass on a position in gold in favor of assets they understand better.For those that are bullish, they can consider owning physical gold. They can also consider buying the SPDR Gold Trust ETF (NYSEARCA:GLD). Beyond that, they might consider owning gold stocks too.I like both Barrick Gold (NYSE:GOLD) and Newmont Mining (NYSE:NEM). Both stocks have had explosive moves off the lows. While they seem to be losing some momentum, I think it's simply some consolidation after a powerful move. We're seeing similar consolidation (on a less-powerful move) in actual gold prices.Those who don't like single-stock exposure can consider the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX). Incidentally, Newmont Mining and Barrick Gold are the top two holdings in the ETF, with a 15.5% and 14.8% weighting, respectively.Keep in mind, if volatility really picks up, safe-havens may temporarily be out of favor. Bonds, gold and other assets all felt the pressure when stocks were tanking in March. It was likely that investors had to sell others assets (like these) to meet margin calls and raise liquidity.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GLD. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Should You Buy Gold Stocks Now? Well, That Depends appeared first on InvestorPlace.
Learn about VanEck Vectors Gold Miners, one of the most volatile ETFs in the market, which fell 75% from 2011 to 2015 after climbing 300% from 2008 to 2011.
The Fed is pulling out all the stops to prevent the unwinding of the excesses that have built up over the past decade, explains James Stack, market historian, money manager and editor of InvesTech Research.
A number of gold miners were showing positive action today. GDX is a way to get exposure to the group without single stock risk.
Investors worried about the next market downturn can find plenty of protection among exchange-traded funds (ETFs). Individual stocks can carry a lot of risk, while mutual funds don't have quite the breadth of tactical options. But if you browse through some of the best ETFs geared toward staving off a bear market, you can find several options that fit your investing style and risk profile.Entering 2020, Wall Street keyed in on a multitude of risks: the outcome of the Democratic primaries and the November presidential election; where U.S.-China trade relations would head next; and slowing global growth, among others.But Collaborative Fund's Morgan Housel hit it on the nose early this year in a must-read post about risk: "The biggest economic risk is what no one's talking about, because if no one's talking about (it) no one's prepared for it, and if no one's prepared for it its damage will be amplified when it arrives."Enter the COVID-19 coronavirus. This virus, which has a fatality rate of about 2% and appears highly contagious, has afflicted more than 80,000 people worldwide in two months, claiming 2,700 lives. Those numbers almost assuredly will grow. The Centers for Disease Control and Prevention have already warned that they believe an expanded U.S. outbreak is not a question of "if," but "when." U.S. multinationals have already projected weakness due to both lower demand and affected supply chains, and the International Monetary Fund is already lowering global growth projections.Whether a bear market is coming remains to be seen. But investors clearly are at least rattled by the prospects; the S&P; 500 has dropped more than 7% in just a few days. If you're inclined to protect yourself from additional downside - now, or at any point in the future - you have plenty of tools at your disposal.Here are a dozen of the best ETFs to beat back a prolonged downturn. These ETFs span a number of tactics, from low volatility to bonds to commodities and more. All of them have outperformed the S&P; 500 during the initial market panic, including some that have produced significant gains. SEE ALSO: Kip ETF 20: The Best Cheap ETFs You Can Buy
The outlook for gold prices looks bullish even though the metal’s price has declined today. Investors started to rotate back into risk assets, boosting stock indices. Most analysts agree that the overall outlook for gold is an uptrend as concerns about the coronavirus and a price war in oil continue. Gold outlook is "bulletproof" In his daily commentary, OANDA […]
While gold prices plummeted roughly $80 as most asset classes are tanking after coronavirus panic has spiraled out of control, the precious metal may still be working as it is supposed to be according to some experts.
Gold sank like a rock last week. But it was the Vaneck Vectors Gold Miners ETF (NYSEARCA:GDX) where panic selling was fully embraced. Let's examine what's happening off and on the price chart and determine whether GDX stock is a more worthwhile buy, sell, or hold-off proposition for your portfolio in today's market.Source: Shutterstock Some gold investors might be asking the question, 'what just happened?' And the answer isn't entirely clear, other than the listed and highly-liquid SPDR Gold Trust (NYSEARCA:GLD) tumbled 3.05% Friday to cap off a weekly decline of just over 9%. In total, the selling pressure was the fiercest for the hard asset since September 2011.The aggressive selling in gold comes on the heels of the precious metal narrowly hitting seven-year highs out the gate last Monday. But the metal's status as a safe haven was quickly compromised by a couple drivers to varying degrees.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA surprise rate cut by the Federal Reserve and other stimulus packages to combat the COVID-19 economic fallout may have found some gold investors attempting to rotate unsuccessfully into U.S. debt markets during the week. Gold investors may also be guilty of rotating prematurely into equities during the week as well. * 7 Drowning Energy Stocks to Avoid for Now Undoubtedly, Friday's massive oversold rally in the broader averages and better-than-expected March consumer sentiment report also played a hand in gold's fast price collapse. Lastly, analysts point to forced selling in the metal to cover losses in other risk assets, as well as a way for gold investors to simply raise cash in a crisis that's still far from finished. Recovery TBDBut as bad as it was for straight-up gold investors, on the back of those same drivers, it was gold mining companies and GDX which fared even worse. Bottom-line, with the smallest businesses to largest household names from Microsoft (NASDAQ:MSFT) to Disney (NYSE:DIS), or Coca-Cola (NYSE:KO) taking costly preventative measures, it would be nearsighted to believe mining companies will prove immune to similar actions and economic hardships. Right?Others appear to see the connection in a big way. Industry giants and heavily-weighted ETF constituents Newmont Corp (NYSE:NEM), Barrick Gold (NYSE:ABX), Franco-Nevada Corp (NYSE:FNV) and Wheaton Precious Metals (NYSE:WPM) fell 7% to 21% on the week. Still and maybe somewhat ironically, diversification fared even less well as GDX investors saw shares plummet nearly 15% Friday and 41% for the five-day period. GDX Monthly Price Chart Source: Charts by TradingViewThe good news is, if you're thinking the panic selling in GDX may be a bit too extreme, the monthly price chart is trying to promote that belief. With shares of GDX indicated to fall again out the gate Monday, prices in the ETF will be challenging a key area of technical support from $16 - $17.The technical zone is backed by the instrument's 76% retracement level of its five-year cycle low-to-high, as well as lateral and angular support lines formed over the last couple years. It's an interesting spot to consider picking up stock in the gold mining ETF. That being said, I'd suggest holding off on any purchases within the framework of a falling knife.A failure to hold price support could lead to a continued quick plunge towards $13 and the 2015 low in GDX. As much, today's recommendation is for investors to monitor shares for a flattening of the monthly stochastics or a bullish crossover on the weekly time frame. Should that play out and $16 level hold on the price chart, then taking out the shovel and buying stock in a less risky safe haven makes appreciably more sense.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Drowning Energy Stocks to Avoid for Now * 10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory * How Does the Coronavirus Impact the 5 Biggest U.S. Stocks? The post Where and When to Shovel GDX into Your Portfolio appeared first on InvestorPlace.
My mom is talking to me again.Source: Shutterstock She was quiet when she visited last Thanksgiving. She celebrated Christmas with her other son. And, when I called a few weeks ago to say "Happy Valentine's Day," I got her voicemail.Mom wasn't happy with me.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI talked her out of buying gold stocks last year. That was when GDX - the exchange-traded fund that tracks the action in the major gold miners - was trading near $28 per share. I was cautious, even bearish, on gold stocks back then because the commercial traders, the smart money in the gold business, had amassed a record large short position in gold futures. * 7 Drowning Energy Stocks to Avoid for Now Now… I've been following the action of commercial gold traders for more than 20 years. And, while I've known them to often be early at major turning points in the gold market, I've never known them to be flat-out wrong. So, I told mom that she might want to wait a bit before piling her savings into the gold stocks.GDX traded above $31 per share just three weeks ago. All of her friends in the church choir were making money on their gold stocks. Mom was sitting on the sidelines. She was following my advice, and she wasn't happy about it.Mom finally called me back on Friday. All it took was the largest, broad-based stock market selloff in 33 years, and a complete meltdown in the gold sector.Gold stocks are under pressure, partly because of the mass selling pressure that has been hitting the broad stock market, and partly because the price of gold has dropped more than $150 per ounce over the past three weeks.Gold stocks, which are levered to the price of gold, have given up all of the gains they made in 2019. GDX is trading back down to where it was in December 2018. Here's an updated look at the chart…This is perhaps the most severe decline I've ever seen in the gold sector. GDX lost the support of the $26 level on Wednesday, and the sector went into free-fall. The stock closed at $19.30 on Friday - at about the same level at which it was trading in December 2018.The strange thing is… In December of 2018, the price of gold was $1,250 per ounce. It closed Friday at $1,516.In other words, gold is trading more than 20% above where it was in December 2018. But, the gold stocks are trading at the same depressed level.So, either gold stocks are cheap relative to gold - and are likely to bounce - or gold is expensive relative to the gold stocks and is likely to fall. Or, maybe we'll see some combination of those two scenarios.Either way, I told mom she could do much better by buying gold stocks here at a 20% discount to what her friends were paying last summer."No thanks," she said. "I don't need the stress.""You're probably right," I said. "Besides, I'd rather you not screen my call when I phone you on Easter."Best regards and good trading,Jeff Clark In Case You Missed It…Trader Legend Reveals "3-Stock Retirement Blueprint"Jeff Clark, the self-made multimillionaire, has helped people from all walks of life retire wealthy for the past 36 years…His plan is designed to get your retirement on the fast track with his unique strategy.What's more… it's a piece of cake."With my strategy, you can take advantage of it with as little as a few minutes a day."--Jeff Clark More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Drowning Energy Stocks to Avoid for Now * 10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory * How Does the Coronavirus Impact the 5 Biggest U.S. Stocks? The post Jeff Clark's Market Minute: Momas Finally Talking to Me Again appeared first on InvestorPlace.
Over the past year, shares of the Canadian-based gold miner Kinross Gold (NYSE:KGC) are up over 70%. Gold has recently hit a high for 2020 and the gold spot price is up over 10% year-to-date, hovering around $1,683 per ounce. And KGC stock has been one of the prime beneficiaries of the run up in gold price as well improved conditions across the industry.Source: Shutterstock All asset classes have their advantages and disadvantages. So far in 2020, gold is proving to be one of the best investment instruments. But gold prices can be volatile, so I wouldn't necessarily load up the truck. Indeed many analysts recommend a 5% to 10% allocation of a personal investment portfolio to gold as an insurance policy. There are different ways to participate in the volatility or increase in the price of gold. One way is to invest in gold mining companies like Kinross Gold. Let's take a closer look. Gold as an Asset ClassGold has fascinated humans since the dawn of time. Today, most gold produced is used for jewelry or investing purposes.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere are different reasons behind this year's rally in gold, including the worries about the recent coronavirus outbreak, choppiness in the oil market, talk of a global recession, and rather volatile global equities.This shiny metal's price tends to shoot up in turbulent times as investors turn to traditional safe havens like gold. Between 2007 and 2011, mainly during the global financial crisis, the price of gold went from $700 per ounce to an all-time record of $1,900 in September 2011. * 10 Stocks to Buy for Your 10-Year-Old The current rally in the price started in June 2019 when gold traded around $1,300 per ounce. It looks like the move up is finding support due to the current volatile backdrop. Could gold once again hit $1,900 in 2020?You may be familiar with arguments about gold being a hedge against inflation and a store of wealth. In general, gold has also had a negative correlation to stocks.Analysts are also discussing the near-term possibility that U.S. dollar interest rates may go to zero and that pressure may be put on the Fed to introduce negative rates. If U.S. dollar deposits see negative rates, smart money is likely to move not into other currencies, but possibly into commodities, including precious metals such as gold. KGC Stock Offers Gold AlternativeMany investors regard gold miners as a proxy for gold. And in recent months, many gold miners have indeed seen their share prices pop as the global gold price has surged.Moody's Investor Service on March 2 upgraded Kinross Gold's credit rating to investment grade as its cash cost was "in line with investment grade peers, steady production and conservative financial policies."The upgrade follows the company's most recent earnings. On Feb. 13, management released fourth quarter and year-end 2019 results which most investors approved of. Management has either met or exceeded guidance targets for production, costs and capital expenditures for the past eight years.The miner posted a profit of $521.5 million or 41 cents per share in Q4. A year ago, the numbers were a loss of $27.7 million or 2 cents a share.During 2019, the group generated robust free cash flow. In Q4, it increased liquidity position to over $2 billion. InvestorPlace contributor and Louis Navellier recently provided a detailed analysis of the company, with a focus on its strong cash balance.Management expects to further reduce capital expenditures by approximately $100 million in 2021 compared to 2020 guidance.If gold remains at its current price or moves higher, miners, like KGC, will likely report better margins and rising free cash flow, potentially boosting their stock prices even further.On a final note, when a company owns a mine, it also owns all of the gold stored within it. Kinross Gold currently has mines and projects in the U.S., Brazil, Russia, Mauritania, Chile and Ghana.However, I'd like to remind readers that there may be geopolitical risks regarding the country where the mine is located. In other words, miners' share prices tend to be rather choppy. Investor TakeawayWe cannot know the future with certainty. However, for a good number of people gold is an important asset for defensive diversification. If you also think that the recent strength is the start of a new rally in the precious metal, then gold mining companies like Kinross Gold will likely continue to have a bright 2020. * 7 Ideal Stocks to Buy for Cautious Investors If you are an investor who also follows short-term technical charts, you may be interested to know that prices of both spot gold as well as KGS stock are at overbought levels. On Feb. 24, Kinross Gold shares reached a 52-week high of $6.27. They are currently hovering around $5.70. Although the rally could still continue in March, a pullback is looking more likely in the coming days.However such a drop in price may provide a better entry point for long-term investors who would like to buy into KGC shares. Yet passive income investors should note that most gold miners either do not pay any dividends or are low-dividend payers. KGC stock does not pay a dividend.If you would like to invest in gold miners, but would like to diversify across the industry, then there are also investment funds or exchange-traded funds (ETFs) that invest in gold miners or synthetically holds gold bullion. Examples of such funds would be the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) or the SPDR Gold Shares (NYSEARCA:GLD).As of this writing, the author did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Stocks to Buy in March for a Coronavirus Rebound * 5 Big Reasons Stocks Will Rebound From the Coronavirus Selloff * 4 Large-Cap Stocks Still in Trouble The post With Gold Price on the Rise, is March the Month for Kinross Gold Stock? appeared first on InvestorPlace.
Gold prices touched a 7-year high as more coronavirus concerns continue to fuel a safe haven flight to assets like precious metals. “So far ... gold has demonstrated its safe-haven qualities and we stay long the metal,” UBS analysts led by Wayne Gordon said.