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Thursday, April 24th
Every moment is a golden one for him who has the vision to recognize it as such.
-Henry Miller
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Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Mixed
🇺🇸 United States: Mixed
🛢️ Oil: Up
⚡Crypto: Down
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Major Market Events
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PepsiCo cuts annual profit forecast amid trade war turmoil
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Leveraged equity ETFs popular as investors bet on market recovery
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China remains defiant, says US should revoke all tariffs
🤔 My Thoughts
Yesterday we got a reprieve in the markets as the administration seemed to soften slightly on its trade war positions.
But with more hawkish comments coming after hours… and hawkish responses from China we may be headed right back into the volatility roller coaster.
Now even as the broader market behaves like a drunken toddler…
There have been a few bright spots, including crypto and defense contractors. We’ve been covering those, and done nicely on some of those ideas…
But the obvious winner of the last few months has been gold, as it has climbed to record-breaking prices, flirting with $3500 an ounce.
But the really clever “gold trade” may not be gold at all.
You see, historically gold and silver have tracked each other’s prices quite closely… which makes perfect intuitive sense.
But in this recent gold bull run, silver hasn’t followed along nearly as much.
Check out this rising divergence from the historical gold to silver price ratio:
This chart simply measures the difference in price between the two precious metals…
And you can see that difference exploded on the recent gold run.
So here’s a free trade idea for today:
If you expect that precious metals will continue to rise (a reasonable bet in this market) AND you expect that the gold/silver gap will compress back towards historical averages…
It’s not a bad time to consider buying some silver – which potentially offers more upside then just buying gold at these record-breaking highs.
Any spot silver ETF should work with this idea, but a major one is:
iShares Silver Trust
Ticker: NYSEARCA:SLV
Share Price at Publication: $30.18
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Testimonial of the day:
Jennifer R. about Insider Intelligence:
