Back in April, gold prices plunged into bear market territory, falling under $1400 per ounce, more than 25% below the all-time high prices set in August, 2011. But still the debate over gold rages. Is gold a "barbarous relic" with no intrinsic value, as gold bears contend? Or is gold the only true safe haven from central banks all over the world that are desperately trying to devalue their currencies? A recent DAGMA Market Update explains why neither of these questions has any real bearing on the price of gold in the future. If you want to know the future for gold prices, there's really only one thing you need to know. What it that?
With U.S. stock prices at all-time highs, every investor seems to be asking - "can stock prices still go even higher?" Of course they can, but as a recent Market Update noted, the stock market's push to new highs has coincided with "by far the most bearish combination of data since this publication began in 2009." Indeed, after riding this bull market for more than 4 years, the Market Update has a BEARISH outlook for the first time EVER.
Why? Because many elements of the current investing environment are "consistent with the conditions that existed prior to some of the longest and strongest bear markets in U.S. history." Want to read more about it? If you are a stock market investor, you should. Just click here - try the Market Update and get access to every single issue that's ever been published.
Since 2008, 92% of the DAGMA Market Update's recommended stock and exchange-traded fund investments have been profitable - 202 out of 221 trades, at an average gain of almost 18% per trade. With an average holding period of just over 1 year, the Market Update's completed positions have an average annualized return of 16.3%, during a period when the S&P 500 has been virtually flat. The high win ratio and outstanding returns aren't an accident. By simply analyzing historical precedent, any investor can determine when probability favors stock price appreciation, and when it does not - with resulting accuracy of greater than 90%!
And right now, historical precendent is sending a very clear signal - every investor should be getting out of the U.S. stock market. To find out more, sign up for a free trial to the DAGMA Market Update today!
The top 5 stocks (or exchange-traded funds) from the Market Update's recommended portfolio are listed below, based on the closing prices at the end of the previous week of trading (8/25/14). There are not always 5 stocks desirable for purchase.
1. J.M. Smucker (SJM): $101.36
2. Wisconsin Energy (WEC): $43.98