Gold prices have been on quite a tear in 2016, and the SPDR Gold Trust (ETF) GLD 1.79% is now up 28.4 percent year-to-date.
Citigroup analyst Alexander Hacking just initiated coverage on North American gold miner stocks. According to Hacking, after an incredible first half of 2016, gold investors need to be selective at this point.
“Gold appears well supported at current levels as the world’s central banks pursue a low interest rate strategy,” Hacking explained. “Yet, we are not inclined to aggressively chase the recent rally, especially given that technical positions are very long.”
Hacking has a neutral overall outlook for gold miners, but his top stock picks in the space are Buy-rated Barrick Gold Corporation (USA) ABX 5.05% and Newmont Mining Corp NEM 1.07%. Citigroup sees the most upside for Barrick due to its turnaround program and deleveraging efforts. The firm sees Newmont as the company with the most capital return potential due to its simplified, high-quality portfolio.
On the other end of the spectrum, Citi placed…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!