Get Ready for the ‘Biggest Reversal of Resource Stocks in History’
Source: http://www.contrarianprofits.comPosted on Monday, October 13th, 2008 | In Market Commentary
“In my view, the oceans of new fiat money will chase scarce assets: energy and resources,” says Dan Amoss in The 5 Min. Forcast. “It will stave off the deflationary depression scenario, but not re-inflate the credit/housing bubble. This means the biggest reversal in resource stocks in history is likely soon.More from Dan:
“Since we could be on the verge of the biggest reversal in history in resource stocks, I recommended a call option in Friday’s Strategic Short Report alert. It’s hard to imagine recommending a put right now, when I’m almost certain it’ll lose value in the coming weeks.
“We may retest the lows in the stock market, but if interbank lending rates compress, I think we’ve seen the lows in resource stocks. I’m looking forward to this earnings season more than any in my career. We’ll find out just which companies will be able to deliver decent earnings in 2009, and which ones will just try to survive.”
BTW, the call Dan recommended went for around $5 when he recommended it before the market’s close on Friday. As we write, it’s just below $9. Not bad for a one-day trade. To learn more, check out Dan’s latest alert here.
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contrarian profits, Dan Amoss, Depression, energy, History, Market Commentary, USD
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