The latest on gold and resources... More bearish than 2001... Top money managers are turning to gold... Your best chance at 500% gains today...
Regular Digest readers know we've been discussing the latest on gold and the resource sector...
In short, a brutal bear market has crushed the prices of nearly every commodity over the past few years. As several financial media outlets noted today, the Bloomberg Commodity Index is now down 60% from its 2008 peak...
After years of falling prices, investor sentiment is terrible. Some commodities – like gold – are more hated today than they've ever been. Our colleague Steve Sjuggerud pointed out an unbelievable fact in the August issue of True Wealth, published last Friday...
The price of gold – astonishingly – is at a five-year low. Compare that with stocks, which have run up for six consecutive years.
And gold is HATED today. According to my friend Jason Goepfert (who runs SentimenTrader.com), gold sentiment today is lower than it was in February 2001 – when gold was around $260 an ounce.
Yes, you read that correctly...
Investors are more bearish on gold today than they were in 2001, just before gold began a 10-year, 700%-plus rally...
This type of sentiment extreme always gets our attention. As we noted yesterday...
Buying a sector near the bottom is scary. The news at the bottom is always terrible. Your emotions will be against you.
But buying amidst extreme pessimism is how you make the greatest amount of money...
We think we have a similar opportunity today.
And we're not the only ones getting bullish today...
The latest survey from Bank of America Merrill Lynch shows the world's best money managers are returning to gold. From an article on financial news site MarketWatch...
The world's top money managers have hated gold bullion for almost as long as anyone's been asking them. But not anymore.
"Gold is undervalued" at around $1,155 an ounce, say a small majority of managers, according to the latest Bank of America Merrill Lynch survey. Bulls outnumber bears by only 1 percentage point...
The survey is significant. Bank of America Merrill Lynch spoke to around 150 top investment honchos around the world who manage about $400 billion in assets.
A 1% majority may not sound impressive, but it represents a significant change from the past. More from the article...
Money managers have traditionally been bearish of gold. Merrill Lynch has been asking them about it for 12 years... and for almost all of that time they said it was overvalued – even as the price rose steadily, from 2003 to 2011, from less than $400 an ounce to nearly $2,000.
The last time they were bullish was in 2009, says Merrill – just before it began skyrocketing.
Remember, at Stansberry Research we view "hold in your hand" gold (and silver) first and foremost as real money.
We always recommend holding a small portion of your wealth in physical gold and silver. (If you're new to the reasons for owning gold, be sure to check out our short introductions in the Stansberry Research Education Center, here and here.)
These holdings aren't investments or trades. We aren't looking to profit when prices soar, and we don't lose sleep when prices fall. Instead, we view them as a form of crisis "insurance" you buy but hope you never need to use.
If you don't already own enough physical gold or silver, this is a great opportunity to buy some more.
But if you have those bases covered, and have the funds and risk tolerance to speculate, this is could be a once in a decade (or more) opportunity to make a fortune from the resource sector.
We believe folks who buy the right resourcestocks today could see gains of 500% or more in the coming years. If you're interested, here's what we recommend...
First, be sure to take a look at Friday's Digest if you missed it.
It's imperative you understand how resource stocks differ from traditional investments, and what you need to look for to find the best opportunities today.
Second, consider watching our upcoming Sprott-Stansberry Natural Resource Symposium next week. As we mentioned yesterday, we're now offering online access to this incredible event...
Online attendees will get the best ideas from Rick Rule, Doug Casey, Eric Sprott, and many, many more of the world's top resource experts, from the comfort of their own home.
Click here to see the full lineup and claim your spot.
New 52-week highs (as of 7/20/15): Activision Blizzard (ATVI), ProShares Ultra Nasdaq Biotech Fund (BIB), Anheuser-Busch InBev (BUD), Cempra (CEMP), CVS Health (CVS), Dollar General (DG), PNC Financial Warrants (PNC.WS), PowerShares QQQ Fund (QQQ), ProShares Ultra Health Care Fund (RXL), short position in Suncor Energy (SU), and short position in Viacom (VIAB)
A slow day in the mailbag, where one subscriber writes in about the power of reinvested dividends over time. Send us your comments, questions, or complaints to feedback@stansberryresearch.com.
"Lately there have been several articles about investing, holding and reinvesting the dividends. I started with two shares of AT&T when I was twelve years old. I am now seventy-four and have over a thousand shares.
"Along the way I also acquired the baby bells which have now evolved into such names as Verizon, CenturyLink, Vodafone and Comcast. I hung on even when AT&T went through a really bad time and did a reverse split of their shares.
"When share prices are down it means your dividend can buy more of them. Not all of the baby bells have done well but with such a little amount of my own money invested I haven't worried about them." – Paid-up subscriber Roberta Wiest
Regards,
Justin Brill
Baltimore, Maryland
July 21, 2015
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