I hope you had a nice holiday yesterday. I’m making a semi-long weekend out of this year’s Fourth of July, by working half-days today and tomorrow. That will allow me to catch up on some much needed R&R.
But don’t think for a minute that my market antennae are down. Quite to the contrary, when I “take a break,” it means watching the markets six hours a day instead of the usual 18!
At this point, it’s especially important that I keep my eye on things. Last week, I told you how my signals are indicating that a large downdraft in the U.S. stock market may be at hand, with the Dow falling as low as 11,500 over the next few months. I hope you heeded my warnings and followed the steps I provided in that issue to help you protect your money.
Now, I think further action is required. That’s why, earlier this week, I sent my Real Wealth Report subscribers an important flash alert. As active paying subscribers, they are entitled to get my signals first.
But now that they have had time to act on my recommendations, I feel I can release the information to the general public. Simply put …
It Looks Like a Good Time
To Grab Some Profits
Don’t get me wrong. In no way should you interpret my recommendation to take some profits off the table as an indication that the long-term bull market in natural resources is over. Hardly! Much higher prices are coming.
Instead, I’m recommending this action merely as a good money management procedure. Some pretty hefty gains have been racked up, so it’s time to take some profits off the table.
Heck, many of the investments I’ve mentioned here in Money & Markets have done pretty darn well lately. Here’s a table with some examples (performance through the close of trading on July 2):
|
Investment |
Ticker |
Mention Date |
Gain/Loss |
|
AIM Energy Fund |
IEFCX |
07/28/05 |
20.8% |
|
CIMAREX ENERGY CO |
XEC |
07/25/05 |
-4.1% |
|
XTO ENERGY INC |
XTO |
07/25/05 |
74.5% |
|
Oil Service HOLDRs Trust |
OIH |
09/19/05 |
44.6% |
|
Streettracks Gold Trust |
GLD |
09/19/05 |
40.1% |
|
Tocqueville Gold FundThe |
TGLDX |
10/10/05 |
40.7% |
|
Energy Select Sector SPDR Fund |
XLE |
10/10/05 |
44.2% |
|
iShares Dow Jones US |
IYE |
10/10/05 |
46.9% |
|
Vanguard Energy VIPERs |
VDE |
10/10/05 |
45.8% |
|
iShares S&P Global Energy |
IXC |
10/10/05 |
41.1% |
|
Powershares WilderHill |
PBW |
10/10/05 |
32.4% |
|
US Global Investors |
UNWPX |
10/10/05 |
56.2% |
|
DWS Gold & Precious Fund |
SCGDX |
02/23/06 |
0.7% |
|
Sadia SA |
SDA |
06/08/06 |
81.8% |
|
Archer-Daniels-Midland Co |
ADM |
06/08/06 |
-14.4% |
|
Cresud SA |
CRESY |
06/08/06 |
67.8% |
|
Enerplus |
ERF |
08/10/06 |
-16.6% |
|
U.S. Global Investors |
PSPFX |
08/10/06 |
3.7% |
|
Profund UltraSector Oil & Gas |
ENPIX |
08/10/06 |
30.8% |
|
Matthews India Fund |
MINDX |
09/28/06 |
37.8% |
Naturally, if you’re holding any of these investments, your results will vary based on the times you bought and the fees your broker charges you. (And I mentioned many of these more than once.) But as you can see, a lot of them have had very solid runs.
So, here’s what I suggest: If you own XTO Energy (XTO) … Cimarex Energy (XEC) … the AIM Energy Fund (IEFCX) … or the Dow Jones U.S. Energy ETF (IYE), consider selling and booking some profits.
That will allow you to lighten up your portfolio a tad … and reduce your downside risk.
However, I want to repeat that you should not take this as a sign that the bull market in natural resources is over, especially in energy prices. It’s not even close to over. And that’s why I believe all the other positions are still worth holding.
In fact, I remain firmly convinced that we will see record new highs in the price of gold … in oil … in gas … and in a slew of other natural resources, before the end of this year.
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I have no doubt about it. Chief reason: While the U.S. economy is effectively stagnating, overseas economies are roaring, and they will continue to do so.
Naturally, there will be corrections along the way, but the long-term uptrend for most developing economies — China, India, Brazil and more — have a long way to go. Ditto for natural resource prices.
So, consider booking some gains, and then hold your other positions for more potential profits.
Best wishes for your health and wealth,
Larry
P.S. The opportunities — and dangers — in this market are so unusual, and the timing for investors to take action so immediate, Martin is doing something he’s never done before: Next week, he’s holding a first-ever Weiss seminar online, with full audio and video. And since you’re a reader, it won’t cost you a penny, provided you register now. Click here here for all the details.
P.P.S. If you’re not already a Real Wealth Report subscriber, consider joining now. For a mere $99, you will get a one-year subscription, including all recommendations as soon as I release them (including flash alerts), plus 12 monthly hard-hitting issues that keep you fully informed on the natural resources markets and important happenings on the international scene.
I consider that $99 price a bargain. After all, I estimate that the round of gains Real Wealth subscribers just bagged via my flash alerts add up to over $17,000 — not to mention another $36,000 in gains on open positions.
That totals $53,000 in gains — enough to pay for an annual subscription to Real Wealth Report 535 times over! To become a Real Wealth Report member now, just click here.
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Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Kristen Adams, Jennifer Moran, Red Morgan, Adam Shafer, Jennifer Newman-Amos, and Julie Trudeau.
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