Should You BUY NUGT?
A Stock Pick that Might End with a FBI Visit?
Is NUGT a buy? A common question we receive “Is NUGT a buy” or “Are shares of NUGT going to rise”. Shares of NUGT have performed very well since our last buy alert only a few days ago.
When asked “Is NUGT a BUY” we respond Gold could go either way from this area. Rising rates do not bode well for the miners. We are fast approaching the election and the thesis of the last NUGT alert was a bet that Trump would do well or at least hold his own in the debate. We got the bonus of Wikileaks email dump and that helped the Gold play come to life.
Call it luck? See our Tweet about the Net going down and going long Gold. You can’t make this up!
The market hates uncertainty. What if Trump defies the Mainstream media and takes the election? What if he denounces the results if he gets defeated?
I suspect that would create a rush to buy Gold stocks.
We are in a very strange time. Tensions are high. Russia is getting blamed for the email hacking. They will get blamed for other things yet to unfold.
In the last 15 days, we said raising cash and taking a Gold position & buying Smith & Wesson was a good idea. Both have already provided solid returns. But NUGT is not for the faint. NUGT is a 3X levered long Gold EFT than can rip your face off just as fast as it can give gains. If you can stomach the wild ride it provides you probably should find something that isn’t levered. But for those with a taste for adventure NUGT will deliver with wild swings.
The thing is you need an edge, an event or catalyst to help your odds. Are you willing to bet Trump can take this election? If he wins, I think Gold moving up is a lock.