A recent Bloomberg survey found that investors are fleeing the barbarous relic as if it were… barbarous. Specifically, the holdings in the 14 largest exchange-traded products “ETPs” — which include exchange-traded funds (ETFs) and exchange-traded notes (ETNs) — were down 31 percent since the start of January. That dip represents $69.5 billion of ETP funds removed from gold investments. And it’s the first annual decrease in funds since they began getting tracked in 2003. Furthermore, the Bloomberg survey also found that investors were dumping their gold-backed trading products at the fastest pace since 1932. The reason? According to Robin Bhar, an analyst with Societe Generale SA who’s been ranked by Bloomberg as the most-accurate precious-metals forecaster over the past eight quarters, “All the bullish factors we had pushing gold higher in the last 12 years are now going in reverse.” And she followed that quote up with this: “There will be more ETF selling in 2014 as the price goes lower.” Clearly, investors need to take a wait-and-see approach before getting back into gold.
Despite the normally positive seasonality of December, the past five trading days have been the worst week for U.S. stock markets since late August. Both the Dow Jones and the S&P 500 fell 1.65%. Global markets tumbled in sympathy with the MCSI Emerging Markets Index by dropping 2.36%.
The sole bright spot in your Bull Market Alert portfolio last week was 3D printing pioneer Stratasys (SSYS), which gained 2.56%.
Yet I think this is as good a time to go against the grain as an
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Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: