Some people have earmarked 2011 to be the year of gloom, where stock markets finally begin their slide from glory. Actually, we have all known this. One day, the US dollar would tumble, the Euro would crumble and the price of gold makes its way to the stratosphere. But that day can be another year, or two, or four away. In the meantime, what opportunities remain, given stock markets have already run up tremendously? In the Barron's Roundtable held recently, the following experts gave their opinions:
Felix Zulauf/ consensual opinion: The stock market will move sideways, but fluctuate widely. Too early for stocks to fall in a sloping, bear-market fashion. That is some years out. Another financial crisis in Europe. Gold prone to correction.
Action: Long volatility. Buy agricultural commodities. Long energy. Short Euro. It could go to US$1.20. Short European bonds and banks. Buy gold once it falls to $1,200
Archie MacAllaster:
Action: Buy Manulife at 17.50, Wells Fargo at $31.50, Metlife, Allied World Assurance.
Fred Hickey: The speculative phase in gold is still ahead of us.
Action: Buy Sprott Physical Gold Trust, Yamana Gold under $12, Newmont Miningat $57, ebay and Microsoft.
At this moment, gold has already started its correction. As I do not expect it to fall all the way to $1200, I have added more at $1300. In my last article, I mentioned that a bull market can last anything up to 4 or 5 years. This is the third year of the bull run. I think, even if it ends this year, it is perfectly legetimate. This is where I differ from Zulauf that the slide will only occur some years out.
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