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Posted March 22, 2019

Byron King

By Byron King

Unsexy Sector Heats Up

A reader asks how to use precious metals when it hits the fan:

I own some silver (American Eagles mostly) but I have a question for the doomsday crowd: How do precious metals hedge? How are they going to help in a meltdown?

Is it just the preservation of purchasing power as the dollar becomes worthless or will grocery stores suddenly accept gold as payment? Will the local gas station denominate their pumps in silver?

It seems like investments in chickens and solar panels might help just as much.

Go long on chickens and solar panels, too, but dont leave precious metals out of the equation. Heres why or rather how thatll work:

I own gold and silver bars only. It doesn't make sense to imagine haggling about the collectable value of coins in the future when trying to barter for food or other essentials.

My gold is held in tenth ounce assayed and sealed bars. No one is going to make change for a large bar. The one-ounce silver bars are stamped with purity and weight and individually sealed.

None of my stash is intended for investment only for WTSHTF.

Even if you dont have a bunker, say, in Wyoming (or maybe you do), other than precious metals, how are you preparing for scenarios like a major power outage or financial meltdown?

Let us know.

Your Rundown for Friday, March 22, 2019:

Unsexy Sector Heats Up

Theres nothing sexy about utilities. But they support our very existence. Water? Electricity? Cant live without them. (Okay, electricitys negotiable but still.)

Maybe thats why the utilities sectors transcending other sectors this year...

table

For the past 12 months, the sector represented here by Utilities Select Sector SPDR ETF (XLU) has gained 21.8%, seriously outpacing any other sector. And just last week, XLU reached a record high.

chart

If youre looking for momentum, XLUs a great way to get exposure to a basket of utility stocks.

And some of the best-performing S&P 500 utilities last month: AES Corporation (AES), American Water Works Company Inc. (AWK) and Consolidated Edison Inc (ED).

Plus, utilities are an outstanding way to get defensive when it comes to your portfolio.

Market Rundown for Fri. March 22, 2019

S&P 500 futures are down 16 points to 2,846.75.

Oil is down 79 cents to $59.19 per barrel.

Gold is up $4.20 to $1,311.50 per ounce.

Bitcoins up, too, by $14.82 to $4,010.57.

Have a good weekend. Well catch up Monday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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