The Last Time We Saw This, Investors Doubled Their Money in Six Months
The Last Time We Saw This, Investors Doubled Their Money in Six Months by Justin Spittler – Casey Research
Gold couldn’t catch a bid in December 2015.
It was down more than 30%, and trading at the lowest price in nearly six years.
Gold stocks, which are leveraged to the price of gold, were doing even worse. The averagegold stock was 80% off its highs.
Most investors wanted nothing to do with gold. But not Doug Casey.
Doug knew gold would rebound. It was only a matter of time. He even told Kitco, one of the world’s biggest gold and silver retailers, on December 18, 2015, that he was buying gold hand over fist:
My opinion is if it’s not the bottom, it’s close enough to the bottom. So, I have to be an aggressive buyer of both gold and silver at this point.
• Doug’s timing was nearly perfect…
The day before, gold bottomed. It went on to gain 30% over the next six months.
The average gold stock more than doubled in value over the same period.
I’m telling this story because an opportunity just like this is shaping up before our eyes. Only this time, it’s in the energy market.
• Energy stocks have been beaten to a pulp…
You can see what I mean below.
It shows how the Energy Select Sector SPDR ETF (XLE) has done since the start of the year. This fund invests in 36 major U.S. energy companies, including Exxon Mobil and Chevron.
You can see that XLE is down 13% this year. That makes energy stocks the worst-performing sector in the S&P 500.
Energy stocks are now off to “one of the worst beginnings to the year ever,” according to Morgan Stanley.
As if that weren’t enough to scare away most investors, look at the ugly chart below.
It compares the performance of XLE with the SPDR S&P 500 ETF (SPY), which tracks the S&P 500.