Markets

(Podcast) Is Gold Headed Below $1,000?

It's been 1,383 days since the U.S. stock market's (NYSEARCA:SCHB) last 10% correction. And although the S&P 500 (^GSPC) has climbed just over 10% during the past year, not all segments of the equity market have been good performers.

For example, mining stocks (NYSEARCA:GDX) have crashed more than 42% during the past year. (Yes, 42%!) This has lead to huge gains in inverse mining ETFs that use leverage like the Direxion Gold Miners Bear -3x ETF (NYSEARCA:DUST). DUST is up more than 74%. But behind the bear market in mining stocks is another bear: a bear market in precious metals.

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This week the SPDR Gold Shares (NYSEARCA:GLD) hit five-year lows and levels not seen since Q1 2010. (See chart below) Back in August 2011, the assets inside GLD topped almost $78 billion but have now shrunk close to $26 billion. GLD is down almost 38% since hitting its Aug. 11, 2011 peak.

In my latest weekly podcast , I explain the how the vicious bearish price action in precious metals (NYSEARCA:GLTR) has shocked fervent goldbugs and what it means looking ahead.

Another topic covered in the podcast is my $1.8 million Portfolio Report Card for DC in Florida. DC is a retired married couple in their 60s who sent me their investment portfolio for a complete full-body analysis. They wanted to know how their investments score on cost, risk, diversification, taxes, and performance.

In the same podcast episode, I chat with Joe Witthohn, CFA at Emerald Asset Management about his take on gold along with consumer staples (NYSEARCA:XLP) and healthcare stocks (NYSEARCA:XLV).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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