Trader: It’s time to buy gold right now
The markets are still waiting for a clear winner to break out before the Nov. 8 presidential election. It’s hard to hedge our positions with this much uncertainty overhanging this election. In the meantime, the markets are in the early stages of Q3 earnings, which are turning out to be a pleasant surprise.
It’s still early, but with over 80 S&P companies reporting, their total earnings are up 3.9% from the same period last year; 79% are beating EPS estimates, and 62% reporting better-that-expected revenue estimates. It’s still early, but not a bad start.
It’s time to take another hard look at gold
So with all this uncertainty, what should an investor focus on? There is one investment vehicle up 16% for the year, while the Dow Industrials, S&P 500, and Nasdaq are each up about 4.5% for the year. Gold has been quietly building a base around $1,250.
There are many ways to invest in Gold. Harris Shapiro, CEO and founder of Focusedstocktrader.com, has realized huge gains this year in the gold mining sector. In February, he recommended the Gold Miners 3X ETF (NUGT) at $10.00 (split adjusted) and traded it several times on the way to $35.80. Harris took profits in early August and believes it is time to re-enter the sector.
Like Harris, I also believe it is time to take a good hard look at investing in gold. But I prefer the physical. Gold closed yesterday at $1,271. After falling to pre-Brexit levels in early October, gold seems to have built significant support at the $1,250 level.