Once again the stock market dumped into this week and is now oversold trying to find buyers. Can the stock market rally after the Fed meeting today? That’s what everyone is asking and what I talked about with David Skarica of addictedtoprofits.net in this video interview after the close yesterday:
I’m hopeful that the stock market will bounce into Christmas, but I’m actually more interested in making money in things that I think are going to do more than just bounce for a few days, but up well into 2019.
There are defensive sectors and asset classes performing better than most stocks are now and simply breaking away from the stock market.
At the top of the list is gold. Look at this relative strength chart comparing the price of gold with the S&P 500 as it is simply surging now.
A more dovish Fed is bullish for gold and we can expect the Federal Reserve to first stop raising rates and then eventually lower them in time.
In 2000 gold made a key bottom as that interest rate hiking cycle ended and in 2007 gold broke away from the stock market in August and outperformed just about everything else for a year afterwards.
The same thing is starting again with gold.
I firmly believe gold and the correct mining stocks are not just bouncing, but are breaking away from the market now to become the big winners of 2019.
I talked that among other things with Dave. To go to our discussion click here:
-Mike
