This regular column reviews several different markets including: stocks, commodities, currencies and precious metals. This week focuses on the Dow industrials vs. the transports, the US dollar, and the junior gold miners fund (GDXJ).
The world’s major stock markets have been in a secular bear market since the year 2000. However, unprecedented stimulus efforts by the world’s central banks is likely bringing the 13 year bear market to an end, and it now looks safe to reenter the market and be long stocks.
One of the elements of Dow Theory is that the Dow Jones 20 Transportation Average (DJTA) should confirm new highs in the Dow Jones 30 Industrial Average (DJIA). When this fails to happen, as it has now, it is a bad sign for the market.
The price of gold has risen every year for the past 11 years producing an average annual return of 17.7%. The bull market is now in its 12th year and the outlook for gold is more bullish than it’s ever been. The question is: How high will gold go?
Arguably the simplest way to make handsome returns in the stock market is by riding a long-term bull market from its early stages through to its completion. Investors who can identify these secular trends early, and who have the patients to sit tight need only make a handful of investment decisions in their lifetime. Getting [...]