Saturday, May 25, 2024

The World's Most Hated Bull Market

In today's Masters Series, originally from the April issue of True Wealth, Brett analyzes the current state of the gold bull market... details how history shows gold stocks still have plenty of room to run higher... and reveals how you can position yourself to profit as this uptrend continues...
 
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Editor's note: This gold boom is just getting started...

Gold is the perfect hedge against economic uncertainty... And it's even better to buy the precious metal when it's in a bull market – like today.

That's why True Wealth editor Brett Eversole stresses you must put your money to work in the gold market today in order to avoid missing out on this huge moneymaking opportunity.

In today's Masters Series, originally from the April issue of True Wealth, Brett analyzes the current state of the gold bull market... details how history shows gold stocks still have plenty of room to run higher... and reveals how you can position yourself to profit as this uptrend continues...


The World's Most Hated Bull Market

By Brett Eversole, editor, True Wealth

All Katherine Gorell wanted to do was "buy low and sell high"...

In May 2010, Katherine, a communications coordinator in Miami, Ohio, told the Columbus Dispatch she was thinking about buying gold.

She'd suffered some investment losses since the Great Recession began. Her portfolio was down nearly 5% since 2008. And she'd just lost about $1,000 in the "flash crash" earlier that month. As she told the Dispatch...

The economy is global and there are so many weak links – anything could happen at any time. Gold is one of those things that people have always thought was safe.

Katherine still hesitated, though. The Dispatch wrote, "She's held off... partly because the price is now so high."

Gold had entered a record-breaking bull run. Katherine didn't want to miss out while her stocks kept losing value... But like any good investor, she thought it was a bad idea to "buy high."

It's an investment truism we've all heard. But it can be misleading. By only looking at the new highs, Katherine was missing the bigger picture – and the upside that was still ahead.

After the article published, gold went on a wild melt up... soaring 59% in a little more than a year.

I joined Stansberry Research the month after the Dispatch article ran. It was the start of my career... So the 2010 and 2011 gold mania is seared into my memory.

Our business has always covered under-the-radar investments for our readers. We want to share things you won't hear about on CNBC or read about in the Wall Street Journal.

Gold has always been a black sheep in the world of high finance. And in 2010, it was a mainstay of our coverage...

It was a wild bull market. And we saw gold still had room to run. So we urged investors to look past the all-time highs to see the greater upside ahead.

By winter, gold was the hottest investment story in the world...

When you turned on financial television, it felt like every other ad was either trying to buy your gold or sell it to you as an investment. Every pawn shop and resale store in my town plastered huge "WE BUY GOLD" signs in the windows.

Of course, that was the environment where investors should have shown caution...

The danger sign isn't when an investment is hitting new highs in price... but when it's hitting new highs in popularity.

By the time gold finally peaked in 2011, investors had lost all fear. The metal was hitting one new all-time high after another... And everyone wanted in.

That's completely different than what we see in the gold market right now...


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Today, gold is soaring once again. It's hitting new all-time high after new all-time high. And after trying for years, the metal is finally holding prices well above $2,000 an ounce.

This year is setting up to be a repeat of 2010. So investors should love the metal. They should be buying hand over fist.

Instead, gold is the most hated bull market in the world right now.

And that's what makes gold such an odd case right now...

The metal is up more than 50% since bottoming in late 2022. It hit a new all-time high earlier this week. And it has essentially been on a one-way ride higher in recent weeks. Take a look...

 

Given the fact that the precious metal is in a powerful bull market, we'd expect human nature to have already kicked in. Investors should be falling all over themselves to buy gold. The past 19 months should have sparked "animal spirits" in the market... But that hasn't happened.

Instead, many investors are selling, even as prices rise. Sentiment is darn negative. But as we'll see moving forward, that won't last.

This breakdown between prices and sentiment will end the way it always does... with investors finally coming around, and prices soaring.

That means despite the big move in recent months, gold has much higher to go. We're on a clear path to $3,000 an ounce... potentially even higher.

We're taking advantage of this setup with gold stocks. These mining companies haven't soared alongside gold in recent years. It's the opposite of what we'd normally expect.

But that trend has reversed in just the past few months. And it's a signal of big things to come.

Buying today means putting our money to work before the crowd realizes what's happening.

What's likely from here is that prices will keep rising. At some point, investors will wake up to the big gains that have already passed them by. That's when they'll start buying in a big way.

These are the cycles that can turn a boom into a bubble... and push prices to unimaginable heights.

We're not there yet. But today's sentiment shows us that the gold bull market is closer to the beginning of its run than it is to the end. And positioning ourselves to profit now means we'll be locking in big gains when the crowd is clamoring to buy.

This is the most hated bull market in the world today. We want to take advantage of it.

Good investing,

Brett Eversole


Editor's note: A rare opportunity is developing in the markets right now. The last time this happened, it signaled a huge move in the metals market that could have helped you earn 500%-plus gains in just six months, thanks to a particular group of stocks.

That's why Brett recently went on camera with Gold Stock Analyst editor John Doody to detail how you can take advantage of this unique setup. Plus, they revealed the No. 1 stock you must buy immediately. Click here to get the full details...

 

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