"They're getting rid of an energy stock Exxon Mobil (XOM)... Now that leaves Chevron (CVX) as the only oil company in the DJIA. Personally, I take that is bullish sign for energy stocks. I think people are under invested in energy. People really have no idea how much higher oil prices are headed. I think they're headed ultimately a lot higher and so I think that this is a good contrarian indicator."
Aug 26, 2020
Jul 27, 2020
Bearish Scenario For Stocks
I wonder how long it will take equity investors to realize that a collapsing dollar and soaring Gold price are bearish for stocks, as it will force the Federal Reserve to dump bonds, forcing interest rates to surge, the Federal Government to slash spending, and corporate earning to plunge.
Related trading instruments: SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD)
Why Traders Are Buying Stocks
CNBC's Jim Cramer is wrong about why investors are buying stocks. They aren't buying because they expect a COVID cure, but because they expect the Fed to keep printing money. They just don't understand how bad the consequences will be. If they did they'd be buying Gold instead.
Related trading instruments: Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD)
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