A Broad Perspective
11/17/2006 12:00 am EST
Economic mavens, Mary Anne and Pamela Aden, perform a thorough examination on a broad array of economic and market sectors. In their latest missive to their subscribers, they offer specific recommendations for profiting from their insightful knowledge.
"Gold, silver, and their shares, and resource and energy shares are rising in a renewed rise, potentially lasting for several months. Silver is stronger than gold; keep a larger portion in physical gold and silver or their ETFs. Buy the strongest gold and silver shares, or the gold shares ETF, Market Vectors Gold Miners (GDX AMEX). To buy physical metals, contact Dana Samuelson, email@example.com.
"Buy new positions in the strongest natural resource stocks and keep the ones you have. Cameco (CCJ : NYSE) had a set back and we recommend selling it. Other uranium stocks are overbought, so we'll wait. Crude oilcontinued to bottom this month, it's extremely oversold and it looks like it's at or near a low area. The energy stocks appear to be leading oil. Exxon (XOM NYSE) remains the strongest, recently reaching a new high. Buy the top five: US Oil Fund (USO AMEX), iShares S&P Global Energy (IXC AMEX), iShares Dow US Energy (IYE AMEX), Energy Select SPDR (XLE AMEX), and especially Exxon (XOM NYSE), and hold the others.
"Bond prices are strong and bullish, poised to rise further. The 30-year yield is near an eight-month low and short-term interest rates will likely soon follow long-term rates down. Continue to buy and hold US government long-term bonds with at least 10% of your total portfolio. We also like the iShares Lehm 20+ Trs (TLT AMEX).
"The Dow Jones Industrials are looking good but the market is overbought and due for a correction. Other stock indices have yet to reach new highs and they're not reinforcing the action in the Dow. We'd like to see them confirm, and see how the potential downward corrections unfold. Depending on the outcome, we'll either buy or stay put.
"The US dollar remains bearish. A renewed decline will be reinforced if the dollar index declines and stays below 84, especially 80. The currencies are bullish. Buy and hold the British pound, euro, Canadian dollar, Swiss franc, and/or the currency ETFs and funds British Pd Ster Tr (FXB NYSE), Euro Currency Tr (FXE NYSE), Swiss Franc Tr (FXF NYSE), Canadian Dollar Tr (FXC NYSE), Merk HD Cur Inv (MERKX ) Fund, and Franklin Temp Hard Fund (ICPHX ) with 30% of your total portfolio, diversified between these currencies. The New Zealand and Australian dollars also look good again and they're okay to buy too. You can buy currencies at Everbank 1-800-926-4922."