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.
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).
Follow us on Twitter @ ETFguide
- Gold vs. Silver: Is the Ratio Bullish or Bearish?
- Have Precious Metals Seen Their 2014 Peak?
- Is Gold's Knockout Punch Coming?
- How to Print Money in the Psychotic Gold Market
- Will Gold's Latest Rally Stick?