I would like to give my followers some choices for their own investments that may be safer ways to participate in what I do. Buying individual stocks is risky and buying ETFs is much safer, but they are only safer if the whole sector is cheap.
As I investigate opportunities, the first place I start is relative sector performance which up until recently oil and precious metals have definitely underperformed.
I believe that I have the macro picture correct, that the USD will turn and commodities and other investments related to commodities will outperform for a little while. That doesn't mean go all in on these sectors, but if you'd like to see if you enjoy the ride, try these two investments.
I am bullish on oil, gold and Canadian dollars because I'm bearish on US equities and especially the USD. This means that if I'm right, Canadian REITs will outperform (due to currency) and Canadian gold and materials generally will outperform.
I'm suggesting you may want to consider XRE for Canadian REITs and either XGD for gold or XME for materials.
Price at Friday close: XRE.TO $15.69, XGD.TO $12.96 and XME US$25.67 (US ETF). I would buy all of these and own XRE and gold miners right now.
This is just a way to participate in the macro picture a bit more safely than what I write about. Thanks for following along.
PS. I have written about XLE in the past and it's safer than the oil companies I chose, but don't buy it now.
Disclosure: I am/we are long XRE, GG, AEM, AG.