All jokes aside, the Fed is cutting rates into a smoking hot economy. This deviation is going to cause ripples in inflation, and not that bullshit crypto shit. With the perception of higher inflation, you should expect assets that protect against it to boom. The gold miners are trading at valuations not conducive with bull markets. The sector is trading in the ballpark of 1.5x sales. Back in 2006, it was trading 6x.
Does it means the miners can run 5x from here?
Your job is to make money, not have a bias. Gold is where it’s at, busting loose from a 6 year base. It cannot be defeated, as long as the Fed is leaning towards cutting rates.
You’re also gonna want to get long some value stocks — because lower rates is good for valuation expansion amongst shit companies that depend on financing to keep the lights on. My top distressed pick in all this, believe it or not, is GE.
Long a basket of high octane gold stocks — head out of the window with my middle finger up. Fuck off.If you enjoy the content at iBankCoin, please follow us on Twitter