This past week was a busy one as I prepped our Members for some moves I recommended late in the week. They may well be augmented in the week ahead, due to the looming Fed meeting and other factors I have been discussing.
If YOU are not presently a Member, become one RIGHT HERE. (And NOW would be an especially good time; our rates are set to rise for only the second time in the last 20 years before month's end.)
That rise will be accompanied by only the second major revamp of my web site in that time as well. Among other additions will be an enhanced Members-only portal which--among other things--will be populated with exclusive video updates for Members on the markets and on specific recommendations on occasion!
Reminder...DON'T MISS THIS!! --
As "old tech" represented by the likes of Facebook, Amazon, Apple, Netflix and Google loses more of its mojo due to numerous factors, a new FAANGs theme is emerging:
Fuels (of most all kinds)
Aerospace/Defense
Agriculture
Nuclear energy/other renewables
Gold and other metals/materials
And at the next Money Show Virtual Expo, you'll learn about why this theme is going to be with us for years; ultimately, becoming THE BIGGEST ONE in investors' minds.
Registration for this next Money Show is FREE--RIGHT HERE.
Yours truly will be presenting LIVE on Tuesday, June 21 at 4:00 p.m. Eastern time...AND taking some questions!
DON'T MISS THIS "ROADMAP" laying out much of our investing future.
This past week underscored what I think will be a growing trend of these New FAANG sectors bucking the overall--and now renewed--downward trend for the broad stock market. While the Fed ramping up its hawkishness in the week ahead may ding just about everything anew somewhat, I firmly believe the summer will be bringing us a more acute "changing of the guard" in the markets.
I'll be speaking/writing about that change a LOT in the days and weeks ahead.
Earlier this past week, my old friend and colleague Michael Fox and I spent a lot of time on these areas on HIS PODCAST; in part, setting the themes for the looming Prospectors and Developers Assn. (PDAC) gathering set to belatedly convene in Toronto.
YESTERDAY on our week-ending Metals, Money and Markets Weekly, The Mercenary Geologist Mickey Fulp and I covered this as we did our regular lap around all the markets for the week just past.
Despite weakness most everywhere else, crude oil set a new weekly closing high for this move...uranium continued its rally...and other elements of The New FAANGs showed themselves ready for more fireworks.
As I said at the open of yesterday's show with Mickey, I'd have to go back a LONG time to find a performance for gold that impressed me more than yesterday's!
I have been short-term bearish on gold and silver since again advocating selling our precious metals sector trading positions shortly after gold's high of a few months back. I correctly indicated that we'd go back down to $1,850/ounce support (we did) and perhaps even the $1,775/ounce area (very close to that recently.)
As soon as those hot inflation numbers came out yesterday morning, gold plunged. For a while now, it has reacted negatively with most everything else to worries over a rising dollar and interest rates, and a more aggressive Fed.
But then around mid-morning--not long after the markets were officially opened--the yellow metal surged higher. Even silver was dragged higher a bit in sympathy.
AND even gold-related stocks had a generally strong day.
Notably, this was all DESPITE stocks crashing lower AND both the dollar and market interest rates screaming higher.
In a looming Special Report on the precious metals I'll be delving into this; and likewise--as I get ready to rejigger our portfolio mix even more--will be doing so in the regular issues/alerts of The National Investor.
But suffice it to say for now that yesterday's boffo performance--and in technical terms an "outside day" for gold (where the yellow metal traded below the prior day's low, then rebounded and closed above the prior high)--marks the beginning of the end for this latest gold correction.
It's possible that yesterday's spurt will be reversed mid-week if (as I expect) the Fed suggests the possibility of an even larger than 50 basis point hike for July. But even that is not going to change the big picture I see unfolding. And it's about time again for the PM's as a group (led by gold, chiefly) to shine anew.
In the new issue of The National Investor I am working on over this weekend, I share more details with Members as to how the next leg down of the bear market is going to develop. And as I alluded to earlier, the odds have grown that we may increase our bearish bets even more before long.
And that, frankly, is because of a realization that STILL has not yet set fully into investors' minds but likely will come 2:00 p.m. Eastern time on Wednesday afternoon.
And that is the Fed WILL risk a recession (and perhaps worse) in its fight to bring the inflation that it created back down. Indeed, it has already suggested as much; and will be even more plain about this come Wednesday, given the hotter-than-expected inflation numbers across the board released yesterday.
Politically, Inflation is Public Enemy Number One.
The Fed has putting it back under control as its TOP priority and political imperative.
It has NO intention of "saving" the stock market.
Only if (or more likely, when) it pulls out one too many sticks in its game of Monetary Jenga will it relent.
By then--if your portfolio is like the average investor's--your losses so far in this bear market will have at least DOUBLED...or worse.
Comments/questions? -- Write: chris@nationalinvestor.com