General Market Commentary
General Market Commentary
Gold Dips, Copper Rips, Pot Stocks Flip
BY: NICK HODGE
An incredible week of market action as stocks that fell on nervousness headed into the election reversed course in dramatic fashion to put in new all-time highs on the back of a Biden win.
That’s the main plot. But the subplots are more interesting, and perhaps more rewarding.
Rotation is afoot.
Tech stocks did not lead this most recent rally. It was energy and financials leading the way.
This flies in the face of the recent depression/recession narrative, with stocks pricing in an economic recovery, perhaps spawned by a soon-to-be vaccine.
Cleantech and cannabis are winners to be sure as growing ganja with curtailed carbon is gonna be all the rage, Jack. I’m interested in establishing some positions there.
What about the hard stuff?
I told premium readers last week Family Office Advantage to take small profits on a gold position near its highs. You could’ve made a good argument for calling me crazy.
Turned out to be the dead-right call with gold falling to its support in the low $1860s and gold stocks putting in an 8% selloff very quickly.
The golden dip of late October and early November turned out to be the perfect golden flip.
That selloff hasn’t translated to other parts of the resource sector like copper and lithium and other things needed for a renewed focus on clean energy.
Indeed, copper is at two-year highs, lithium stocks are catching a bid, and I’ve even seen some excitement around so-called clean nickel if you can believe such a thing.
Clean not just for your car and your home, but clean to mine those bitcoins, which now trade at over $15,300 a pop — its highest price since the last time you talked about it with family and friends at Thanksgiving two years ago.
Lots to look into and like in the base and energy metals sectors.
Is the recent pullback in gold another golden window to be bought?
Call it like you see it,
Publisher, Resource Stock Digest
Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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