Gold,Energy and Commodities sell off
Its not a good day if you just taken your position in the alternative sector. Readers would know that i have been harping on abit on this portion of your portfolio, but the last few days have been really scary.
Gold mining stocks fell by 15% in a matter of less than 3 days. Granted we have been at a rather high level for sometime now, this correction couldn’t come at a better time. If you want something to go up you need for it to have sufficient strength. This pullback is good for this asset class. However, i get the annoying thing is that much of the action was brought about probably by Goldman Sachs shorting gold.
We hope that the correction would take HUI down to 395. 396 and 370 looks strong support. However, don’t bet against HUI rushing up on monday as well.
For unit trust investors, First State Global Resources, DWS Noor Precious Metals and Streettracks Gold ETF listed on the SGX are good vehicles to get invested in these areas.
With the kind of volatility you are likely to face in alternative sector, do dollar cost average into it should you feel you can’t take the volatility.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment