In a world filled with overvalued stock markets, a market strategist takes another look at the mining industry, which continues to be overlooked by general investors. Jesse Felder, the creator of the Felder report and former Bear Sterns analyst, says in his latest market report that widespread pessimism in the precious metals market has once again made the mining industry relatively cheap. Jesse Felder made the same call in 2018 when he suggested investors look into stocks he calls BANG (Barrick, Agnico Eagle, Newmont/Goldcorp) and FANG (Facebook, Amazon, Netflix, Google). The VanEck Gold Miners ETF, which represents top gold producers, is up 44% since Felder’s first call in May 2018. The ETF peaked in July 2020, which represents a gain of around 90%.
Jesse Felder explains why gold stocks are bullish
Jesse Felder now says he sees the same conditions as three years ago. The analyst states that despite record margins, increased cash flow and improved balance sheets, the mining industry remains uninterested as gold prices are stuck in consolidation. Jesse Felder describes the current performance of the mining industry as “absolutely pathetic compared to the S&P 500.” The analyst highlights the following points in the report:
Part of this is due to the excellent performance of the vast exchange led by the likes of FANG. But that gap could be closed by a stock market (due to an earnings recession next year).
Jesse Felder adds that he has taken a bullish position in gold stocks as he expects gold prices to rise eventually:
If, like me, you believe that gold prices are only in the midst of a new long-term bull market (as the history of previous bull markets for the precious metal has shown), then gold mining stocks are very cheap compared to today’s prices.
Is the Fed’s headwind blocking the rise of gold?
cryptocoin.com As you can follow from the news, gold prices struggled to gain new momentum and managed to rise above $ 1,800. At the time of writing, gold price was trading at $1,806, up 1.30% daily, while December gold futures were up at $1,807, up 1.44% daily. Analyst Jesse Felder states that the value of gold fell in May as investors ignored the threat of rising inflation.
The analyst says gold is facing some significant headwinds as the Federal Reserve prepares to tighten its monetary policy by starting to reduce its monthly bond purchases before the end of the year. Meanwhile, tighter monetary policy expectations pushed the US dollar closer to one-year highs. At the same time, US 10-year yields have more than doubled from last year and are currently trading around 1.67%.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.