arabianmoney.ne /By Peter Cooper/ February 4, 2013
It’s an intriguing prospect raised by Wall Street newsletter writer Mike Swanson. He thinks US equities are not far off reaching a top for the year and thereafter a sidewards drift in a narrow trading range is all this market has to offer.
Mr. Swanson recalls three periods in the 2003-7 bull market when stocks behaved like this but gold and energy stocks did very well. Holders of junior gold stocks in particular may remember this as a period of fantastic gains that have been cruelly dashed since the crash of 2008.
New bull phase?
Gold and silver topped out in October and April respectively in 2011 and gold producers’ stocks have underperformed since then (see chart below). Mr. Swanson maintains the GDX gold ETF chart is about to breakout from around 40 within a few weeks.