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Portfolio Manager for a Hedge Fund
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Absolute Capital Management
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Absolute Returns
  • Stepping to the Sidelines on Gold Miners 0 comments
    Nov 5, 2009 02:20 PM | about stocks: GLD, NGD, KGC, AU, NEM
    While Gold certainly has a long way to go upwards, the bullishness for the yellow metal has gotten out of control. Following my contrarian investment philosophy, we got into Gold a few months ago when market participants were still high on equities and rode this smooth wave up for over 20% gains.  Now that the masses are joining in the trade, I think it's time to step away from this trade for a while and wait for a correction.

    Specifically, this call also ties in with my expectation that the dollar may rally, leading to a drop in commodities, and a correction in stocks.  I'm not going to short this metal but step to the sidelines.

    GLD: 106.8
    Themes: Gold, Gold Miners Stocks: GLD, NGD, KGC, AU, NEM
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