In this video, Hedgeye CEO Keith McCullough explains why he thinks gold miners are in a “bullish setup.”
“I like them all,” McCullough explains about the Gold Miners ETF (GDX).
“These companies need to consolidate and reduce their cost structure…and what it should do is unleash a round of further M&A.”
“If you’re a gold miner, and you spent all that time building capacity, and you’re like us and you think real bond yields continue to fall as growth slows, you’re probably in hurry-up offense to be buying companies.”
Watch the full video above for more.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.