Following typical annual trends, mid-June has once again brought on the summer slump.
With such little news coming out of D.C., I’m cautiously optimistic that we’ll see slow – but fairly steady – growth over the summer.
Now, don’t get me wrong – just because the market is sluggish doesn’t mean there isn’t money to be made.
What’s the name of that popular precious metal again? You know, the one that humans have fought and died for over millennia? The one with a limited world supply that could be contained in two Olympic-sized swimming pools and that many investors gobble up as safe investments? Oh yeah! GOLD! That’s it!
Mankind has had a love affair with gold for millennia. Although it is estimated by the US Geological Survey (usgs.gov) that 244,000 metric tons of gold have been recovered to date and with approximately 3,000 tons of new gold mined each year, to be clear the supply is limited. Demand is high and will only get higher as the world’s population increases by over 1% per year.
To be fair, gold has been a dark horse for awhile. It hasn’t been occupying much media space since Covid-19 graced the scene.
But…stealthily….gold has been on the rise for months now.
Ever since the shine started to wear off the bitcoin bubble, that speculative cash has been pouring quietly back into safe havens.
And now is the perfect time for all you gold bugs to get a piece….
I wanted to let you know that I will be going live on my YouTube channel at 11am!
There’s an old trading adage, “Sell in May and Go Away”. The idea is that stocks don’t perform as well between May and October as the rest of the year. From 1950 to 2013 that was indeed the case. Over this period the Dow Jones Industrial Average posted lower returns than in the November to April period. According to Forbes, between 1950 and 2013 the Dow averaged a 0.3% return during the May-to-October period versus an average 7.5% during the November-to-April period.
However, this has not been the case since 2013. Since 2014, the Dow has risen an average of 3.32% during the May-to-October period.
Here’s the thing about historical trends. They repeat except when they don’t. The truth is that no one knows for sure which way the market will head tomorrow. Predicting the future works that way. The trick is to find historical patterns that repeat the most and count on them repeating again.
So, with the “Sell in May and Go Away” adage busted, the question still remains, “Which way will the stock market go from here?”
I think down.
And you guessed it, I have a downside play to recommend…