Jim Stack, editor of InvesTech Market Analyst, remains cautious on the outlook for the stock market and views a position in gold as a smart hedge. Here's his recommended play.
"We continue to recommend Newmont Mining (NEM NYSE). Gold is proving its value as a safe haven and hedge against a falling US dollar. The precious metals segment of the mining industry has soared 45% over the last eight months. Newmont is the largest gold producer in the world. It is essentially unhedged, allowing it to profit from rising gold prices. Although gold stocks have retreated from their May peak, Newmont remains a valuable hedge for our portfolios in case the dollar weakens further. Our only concern would be a sharp rebound in the stock market, which could cause investors to divert funds away from gold investments."