The Commodity Bull Is Still in the China Shop

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...gold stocks haven't been this cheap and bombed-out since 2005. In fact, the mining stocks trade at a seven-year low versus physical gold! You should be aggressively buying up this sector now...

...If you believe, like I do, that inflation is still very much embedded in the financial system then you must also adhere to hard assets, including gold. There's absolutely no doubt in my mind that we'll see much higher inflation as a result of this extravagant spending.In my Commodity Trend Alert [CTA] service, we've recently raised our hedges against commodities. I anticipate tough markets for most of the sector until clearer signs emerge that the Fed has arrested deflation.

Still, I'm buying distressed oil companies and oil equipment stocks - and I'm buying oil right along side some of the best positioned global insiders. The energy sector remains the only segment of the marketplace heavily accompanied by net insider buying since prices began dropping in July.Gold, which FDR confiscated in 1933, would probably rally in a deflationary economy. We got a taste of the huge gold rally to come when gold jumped over a US$100 last week after the AIG (AIG) rescue.

Also, gold stocks haven't been this cheap and bombed-out since 2005. In fact, the mining stocks trade at a seven-year low versus physical gold! You should be aggressively buying up this sector now...

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