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Craig Brockie
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Craig Brockie offers free investment tips through Facebook and Twitter to help you invest like a professional and win. Craig is an investment fund manager for accredited investors. With over ten years of investment experience, he's been a professional investor the past five years. Craig retired... More
My company:
Theta Investments, LP
My blog:
How to Invest Like a Professional and Win
  • Who Cares About Apple And Facebook. Buy These Gold Stocks Instead. 0 comments
    Dec 11, 2012 12:31 PM | about stocks: GDXJ, AAPL, FB, GG, NEM, ABX, AKG, BAA, CSFFF

    So, Apple (NASDAQ:AAPL) has dropped 24% and Facebook (NASDAQ:FB) has gained 56% since September. Who cares? I certainly don't and unless you own shares of Facebook, I suggest you not care either. The best odds right now are in the commodity sector and that's where I suggest shifting your attention.

    Forget about basing investment decisions on trendy gadgets and big names. The best investments are typically in assets that are most out of favor or at least off the radar of the general public. The whole idea is to buy low and sell high. Popularity usually means overpriced.

    For my money, I believe the commodity sector is the place to invest right now. Despite "Helicopter Ben" getting his quantitative easing on, commodity companies are currently out of favor and many have reached 3-year lows over the past few months. Meanwhile, safe haven assets like the US dollar and US treasuries have been setting a bearish pattern of lower highs and commodity funds have been quietly forming a bullish pattern of higher lows. Over the next few months, this points to sharply higher prices for commodities and the companies who produce them.

    In particular, I believe the gold mining fund (NYSEARCA:GDXJ) is currently a best buy near $21 and will likely yield a return of more than 30% by spring. And if GDXJ were to regain it's 52-week high, the gain would be 45% from today's levels. To see other funds I've recently loaded up on, read my last article, "Take The Bull By The Horns Now."

    While I personally prefer the diversification from investing in exchange traded funds, if you like the excitement of picking stocks, you could consider the senior producers Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), or Newmont Mining (NYSE:NEM). If you prefer more speculative plays, the junior companies Capstone Mining (OTCPK:CSFFF), Keegan Resources (KGN) and Banro Corporation (NYSEMKT:BAA) could provide more upside.

    PS. If you do happen to own shares of Facebook, you might consider selling them soon. After plunging a whopping 60% from its opening day peak of $45 to its September bottom of $17.55, FB has increased 56% since then and is currently trading 24% above its 50-day moving average. While Facebook could certainly continue to rally further, the downside risk appears to outweigh the upside potential.

    Disclosure: I am long GDXJ.

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