- Precious Metals are Strong
- BioTech & Genomic ETFs rising above 150-day moving averages
- Three things that will increase your success in the market
Gold appears to have completed its first leg higher and is consolidating that upward move. Probability favors the trend continuing as the Federal reserve is refinancing US Treasuries in the second half of 2024.
Similar comment concerning silver however, silver seems to be advancing slightly ahead of gold.
It is possible the charts could rally to a double top next to the April highs so keep that in mind. In watching individual company names, we are seeing break out above the high prices they reached in April. That leads us to project the ETFs will also break out to higher highs. Stay nimble but committed. Always a hard task, I know that well.
There are many ways to participate in the Gold & Silver markets. Physical metals, ETFs of Mining companies, the Futures market, Royalty companies and individual mining companies.
BioTech & Genomics Equities:
ETF’ in the BioTech and Genomic industry rallied strongly in 2021 sold down hard in 2022, 2023 and early 2024. One can select individual companies in this sector as well. It appears Biotech is recovering faster than Genomic stocks but we’d guess Genomic companies will appreciate more over a 3 to 5 year holding period.
We are sharing the chart for the Invesco Biotechnology ETF (IBBQ) below. We carry nine ETFs related to BioTech and/or Genomics on our watch list. It is difficult to say which ETF portfolio in which ETF will do the best. Three ETFs that are good representatives of the industry are IBBQ below, and Franklin Genomic ETF (HELX*), along with Global X Genomic & BioTech ETF (GEOM*).
A good resource site is linked here for the Exchange Traded Funds site. The site provide multiple individual company, Genomic and BioTech ETF names for consideration.
Three things that will increase your success in the market –
- Take a two to five-year time line for each position. Results sooner is better certainly. If you double in five years, you will beat almost all money managers. 100% divided by five years is still 20% annually. Shorter than that you are in Super-star status. If you reach your goal sooner than that, certainly harvest some of all the position. The largest returns are when you catch a price trend for as much of a market cycle as you can. A market cycle is consider between two to five years. There are plenty of trading opportunities in a market cycle trend. Take a core position and trade half the position and own half the position as one strategy.
- Dollar-cost-average (DCA) – one and done is a perfectionist approach. This is not a perfectionist game. It is a probability game. Think of a batting average in baseball approach for a comparison profile. A 400 hitter (getting a hit 40% of the times at bat) is a Super-star. Relax and let the pitch come to you rather than forcing a hit.
- Price management in a tax favored account /Tax management if in a taxable account. Less stress, less tension. Similar to #2 above. If you want coaching on that, contact me.
Keep it simple and low stress.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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