Posted July 21, 2022
By Matt Insley
Relief Rally (What’s Next?)
It’s been a relief to see green on the screen this week. We’ve had three days of gains and futures this morning have climbed into positive territory.
Before you start piling cash back into stock bets, a public service announcement:
Even if stocks rally 20%, history tells us the roller coaster could plunge us right back down again.
Just consider what happened after the crashes in 2000 and 2007:
Source: First Trust
In both of those cases, rallies of 20% were followed by steep drops of around 30%. Is that nightmare scenario possible today?
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Your Rundown for Thursday, July 21, 2022...
“Best Opportunity… In 30 Years”
Yesterday we shared Jim’s view on an antidote for stock market anxiety.
Gold has declined along with stocks, but as Jim pointed out, it has a much more limited downside and virtually unlimited upside. In other words, keeping some gold in your portfolio is a no-brainer.
A reader had this to say:
“This recent price trend decline in the gold futures contract looks to me to be entirely a function of interest rate sensitivity.
“The multibillion-dollar gold reserves of quality gold mining companies like SBSW and AEM and AUY and KGC are not suddenly intrinsically worth less than they were a year ago.
“Now is probably the best opportunity to buy premiere gold and silver stocks that investors have seen in 30 years or more,” he closes.
We need to heed important warnings, like what Jim will share on Sunday, but remember there are always opportunities.
Market Rundown for Thursday, July 21, 2022
S&P 500 futures are about flat (+0.06%).
Oil’s continues its slide, down 3.25%.
Gold’s up 0.64%.
Bitcoin is down 2.26%, above the $22,000.
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You all have a great day… We’ll have more to say tomorrow!
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