Tuesday, June 9, 2015

Time to Move Capital into Next Bull Market – Part I

Our trading partner Chris Vermeulen just shared with us his take on what most traders are missing when it comes to market rotation. It's a great reminder of what so many of us did so wrong not to long ago. Let's play this different this time.

If you remember the dot com bubble as clearly as I do and are a technical analyst then you will recall the month which the NASDAQ broke down and confirmed a new bear market has started. The date was November of 2000.

You may be wondering why I bring this up. What do tech stocks have to do with commodities?

Good question because they have nothing in common. But the key here is that when a bull market ends in one asset class that money is shifted into another. That money moved into commodities and resource stocks and in a big way. Precious metals and miners exploded, surging an average of 1000% return (10 times ROI) over the next six years, topping out in 2008. In fact, these resource stocks bottom the exact month which the NASDAQ confirmed it was in a bear market on Nov 2000.

Compare Dot-Com Bubble & Burst to Precious Metals Stocks 

Over the next couple of weeks, I will be sharing some of my top stock picks in the metals sector (gold, silver, nickel, and copper). If you missed the 2001 and 2008 metals bull market then you best pay attention and be sure you don’t miss what is about to happen.

Read Chris' entire post and chart work here > Time to Move Capital into Next Bull Market – Part I



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