What continues to be one of the most obvious trades in the world, yet many investors are missing, is to short gold.
Today Morgan Stanley cut their price target for gold in both 2014 and 2015.
Earlier last week Goldman Sachs cut their price target.
Japan has come out and said they are selling gold and will continue to sell gold throughout the year.
Anyone long gold here is playing a fools game. Stocks are and will continue to be the only game in town. Holding gold or buying gold will only lose you money. It’s a QE fear trad — a hyperinflation fear trade. QE has come (three times) and now is nearing an end. Guess what? No inflation. Sell it now before you are selling it at pre-QE levels ($800).
So next time that gold newsletter huckster tells you gold is bottoming for the 8th time in the past year. Throw it in the trash. Pull up a gold chart from the mid 1980’s to late 1990’s. Gold gave you negative annual returns for almost 15 years. That’s like paying a tax, holding an investment that loses money every year.