Latecomer Gold Plays
For those who may finally be regretting a lack of exposure to gold, the value plays continue to offer safe entry into the space.
Do Fools fully grasp the incredible lack of downside risk in shares of Yamana Gold?
The stock finally began to move during this breakout after countless months of being frozen within a ridiculously narrow range. Above $1,200 gold, worst case scenario for the stock is $10. Above $1,000 gold, which I have said will hold as a new long-term floor under gold for the remainder of the bull run, worst case scenario for the stock is $9. So max downside risk IMO is $2.38/sh., for potential upside during this decade of $50 to $100 per share.
Not bad odds when you can find them.
Oh, and in case you had any doubts about where the macroeconomic picture is heading:
(Reuters) - The Federal Reserve is running short of tools to tackle uncomfortably low inflation, and officials are now mulling whether it might help to shoot for inflation above their informal target.
Two top Fed officials, including the influential vice chairman of the central bank's policy panel, have suggested the Fed consider making up for inflation shortfalls now by aiming for higher inflation later.