Dudley Pierce Baker
I follow many of the newsletters and analysts in the resource sector as well as in the U.S. markets. Several of the analysts I follow are looking to 2016 as the year in which we will see new highs in gold as well as in the U.S. stock markets. They speak of the possibility of $5,000 plus for gold and over 30,000 in the Dow Jones Industrial Average. Yes, the prospect is that both markets will rally together.
There are numerous reasons for their projections and I will not get into the details in this article but I firmly believe in their forecast.
One of these analysts, Larry Edelson of Money and Markets, states in his promotional email dated November 3, 2013:
“All of my research is telling me that a new bull leg higher in gold is coming, and it will be the last big move up that you will see in your lifetime. Maximize your profit potential by getting properly positioned, and sooner rather than later.”
Did you get that statement above?
“… the last big move up that you will see in your lifetime …”
I can’t speak for you, but I want a piece of this rally, heck, I want a really big piece. This could be what we have waited for and hoped for and now this opportunity could be right in front of us.
The markets in the United States have recently hit new all time highs but appear to be overbought, in our opinion, and the possibility exists for a significant correction. Exercise caution for now but be ready to re-enter after the correction.
In the natural resource sector, gold, silver and shares have been beaten to hell with monster losses and the jury is still out as to whether we have seen the lows.
What I know is that investors do not want to left out of the massive gains coming so you should be looking for opportunities now and then wait patiently for our ship to come in, probably within the first half of 2016.
Larry Edelson whom I quoted above is one of my many subscribers. I don’t know if he has recently invested in long term warrants but it seems to make sense, why else would he be a subscriber?
Here are a few ideas on how to play this parabolic move in the markets:
- Make a list of companies that you like and have good prospects whether in the resource sector or all investment sectors in the U.S. markets.
- Make a list of companies that your current newsletter writers or analysts are recommending.
- Make a list of the companies on the lists above; which have long term warrants trading.
Remember I am looking out until June 30, 2016 so I can therefore eliminate the use of call options and LEAPS, (Long-term Equity AnticiPation Securities). Sometimes call options and LEAPS may make sense. But my reason for eliminating call options and LEAPS now is they will not give me and all investors enough time as call options will have a maximum life of only 12 months and LEAPS normally up to a life of two years.
Right now I am striving to get positioned with time on my side thus I would only want to own common shares or long term warrants on companies which I expect to soar in the coming bull market.
Currently there are approximately 200 stock warrants trading in the United States and Canada and the opportunities for significant gains are endless. What better way to leverage your portfolio than by utilizing long term warrants and maximizing your gains as we gear up for 2016?
It’s a given when gold and silver explode to the upside that the resource shares will follow and history has shown that there will be many winners with gains of 10 times and more. But this time the gains could be substantially more as gold goes parabolic and approaches $5,000 and more.
In the U.S. markets, if the Dow gets to 30,000 or more virtually all of the stocks will be up, the banks, biotech’s, oil and gas, everything. Those companies with long term warrants trading MUST BE on the radar screen of all serious investors.
In my view, it would be advisable for investors to focus on those long term warrants trading on resource shares and those long term warrants trading in the United States on all sectors which have an expiration life of no earlier than 30 June 2016. Time to play this entire cycle and grab all of the gains possible.
Think about it and visit our website for more information.
Disclosure: Neither Dudley Pierce Baker nor CommonStockWarrants.com is an investment advisor and any reference to specific securities does not constitute a recommendation thereof. CommonStockWarrants.com is an online newsletter providing complete details on all stock warrants trading in the United States and Canada. The information and opinions expressed should not be construed as a solicitation to buy and securities mentioned in this service.