It’s been a roller-coaster ride lately in the markets, but we think that opportunities are appearing in the North American energy areas and in commodities. Stay tuned to our video every week for more on the market activity and how you should respond.
For Doug’s handout on North American energy investment and ETFs, from the recent talk in Indian Wells, please email us at askdoug(at)dougfabian(dot)com or please visit the Special Reports page.
North America is experiencing an incredible energy renaissance and we think that investors should be prepared to take advantage of these opportunities, so download the report today!
Gold has rallied some $150 recently.
Three positives about Gold, for investors to keep in mind:
- Gold hit $1200 twice in the last six months, a “double-bottom” which is a positive technical pattern for this market
- Gold miners are out-performing Gold itself (this usually happens in an ongoing bull market)
- Trading above 50 and 200-day average right now
Three negatives about Gold, to also keep in mind:
- Gold has no yield
- Market feels bullish about Gold
- No indication of inflation
We’re in a short term uptrend, and we see short-term opportunities in Gold. If we saw Gold rise above the previous high, we would feel that we’re entering a new bull market.
Volatility presents opportunities. If you have a high-cash portfolio, an all-mutual fund or all-cash position, or a high allocation to equities, we believe you would benefit from a one-on-one wealth coaching session with Doug. For more information on this session and our perspective on the markets, email askdoug(at)dougfabian(dot)com.
The 50-day average is always an early-warning indicator of movement in the markets. It’s a very helpful tool for watching the global markets and seeing how geo-political activity will affect your investments, or which opportunities might be arising.
We’re watching commodities closely right now, as well as gold and bonds. They are leading the market so far this year, and we are watching for investment opportunities as volatility continues.
There’s no action on this item at this time, but we want to point it out. President Obama recently announced that we need an “end to austerity” in the United States. The deficit has recently declined to $500 billion, so that is what allows President Obama and big government to spend more.
However, down the road, we’ll have another big jump in entitlements as baby boomers retire, so this decline is short-lived. Interest rates will move higher if inflation goes higher, if global growth returns and if raises in wages come to fruition.
So, we encourage you to be prepared to exit risk assets, and prepare to move away from mutual funds so that you can have more clarity in your investing.
If you’re concerned about this and you’d like to schedule a wealth coaching appointment, please call us at 800-391-1118.
This Saturday, at the Financial Fest in Palm Springs (put on by MoneyRadio 1200), Doug will be making two presentations: North American Energy Renaissance and Three Winning ETF Strategies for 2014. Check out the information on this great event here.
As we watch the markets right now, we’re paying a lot of attention to commodities and emerging markets. We’re seeing China, Japan and the emerging markets struggling so far this year. There’s been a huge surge in trader volume as well, and record trading volume by small investors, which is interesting to see.
We’re waiting for the right opportunities, and one of the areas that we see a lot of options is the world of energy through Exchange Traded Funds.
North America (counting Canada and Mexico) is producing more energy than anywhere in the world. The United States has recently become a leader in technology and innovation in energy exploration and extraction of oil and natural gas. There are five areas in which you can participate in energy investment through ETFs:
- Commodities themselves
- E & P – Exploration and Production
- Energy Services
- Alternative Energy
- MLP – Master Limited Partnerships
(For more information about these options and what ETFs are right for your portfolio, please download our special report or email us at askdoug(at)dougfabian(dot)com.)
The market has been affected by the weather, slow earnings and no catalyst that forces big break-outs on the upside. We are seeing flat-lines in general on major indices. Interest rates continue to stay low, and we may not see higher interest rates right away, so we think that fear of big interest-rate moves might be unfounded.
There are investor opportunities in the small-cap oil and energy ETFs, energy services and alternative energy sectors, so keep an eye on those.
Recently, we had a 5% correction, and the markets were looking shaky, but they then came roaring back. Generally, we have not gone to new highs, but the stock markets appear to still be in a bullish frame of mind. Commodities, precious metals, gold miners, agricultural commodities, oil, natural gas, and other new bull markets are good places to be watching for investing opportunities.
Have you ever wondered what really drives the best stocks in the best industries higher?
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Volatility has picked up in the stock market over the last few weeks, providing investors with opportunities amid plenty of individual stock action. Thematic Growth Portfolio Manager and RealMoney Pro Contributor Chris Versace recommends looking for stocks that have a discrepancy between the business fundamentals and the stock price. Versace says the 2014 automotive market is climbing again and GM’s new cost structure should improve margins and earnings. more