Invest in Gold to Profit amidst Bear Market

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

If this market decline feels different to you, then you’re not alone.


It certainly seems like we are entering a bear market in U.S. stocks, and so far the major U.S. averages are quickly approaching official bear market status (i.e. 20% or more below their most-recent highs).

The Dow is down nearly 14% from its most-recent high while the S&P 500 is off that mark by 13%. The NASDAQ Composite is down 17.5% from its latest high. That’s teetering on the verge of official bear market status, but the story doesn’t end there.

The small-cap Russell 2000 Index is already in a bear market, having plunged more than 25% off its high. Then there are international stocks, which have been in a bear market for a while. Emerging markets are down 34% from their highs while European stocks are down some 25%.


Sector-wise, the bear has already invaded U.S. financial (-20.4%), biotech (-38.6%), basic materials (-24%), transportation (-23%) and, the worst of all, oil and gas stocks, which now are down some 56% from their highs.

Perhaps the most troubling thing is that the broadest of all market indices, the Vanguard Total World Stock Index (VT), now is down 20.4% from its high.


I say most troubling because this is the ETF that holds all international and domestic stocks. Now that VT is in official bear market territory, it’s safe to proclaim that we are, in fact, in a global bear market.


So, given the bear market in stocks, is there anything working for investors right now?

Exclusive  ETF Talk: A Fallen Angel ETF Appears Ready for Redemption

The answer is gold.

The chart here of the SPDR Gold Trust (GLD), an ETF pegged to the price of gold bullion, shows it is up some 16.5% in 2016, completely bucking the trend of the major equities averages.


The gains in gold are something subscribers to my Successful ETF Investing advisory service have enjoyed since early January.


Given the fear bid in the market right now, and the likelihood of more fear fueled by a global recession, plunging oil prices, central bank missteps and failed fiscal policy around the globe, gold’s safety bid is likely to continue to keep the yellow metal shining.

If you want to find out how we are currently taking advantage of this global bear market with gold, targeted equity exposure and targeted bond exposure, then I invite you to check out Successful ETF Investing today!

Twain to the Democrats

“Don’t go around saying the world owes you a living. The world owes you nothing. It was here first.” — Mark Twain

Political season now is in full swing, with two presidential primaries down and another one on the slate for next week. Listening to the Democratic debates of late, you would think it’s all about how much government can give you, and to what extent it’s necessary to punish the rich and successful. That debate reminds me of what one of my favorite literary figures, Mark Twain, had to say about the world. I just wish Hillary Clinton and Bernie Sanders were Twain fans, too.

Wisdom about money, investing and life can be found anywhere. If you have a good quotation you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Click here to ask Doug.


I encourage you to read my column from last week about the way markets reacted to the recent jobs report. I also invite you to comment about my column in the space provided below.

Exclusive  One High-Yield Asset Class That Is Loving Higher-for-Longer Rates
share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

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:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops