AM 1150 Kelowna - Radio Rallies & Reversals at 12:13pm
So this morning I talked about the 'mid-summer triple combo'. First utilities - Utility stocks tend to outperform mid July to end of September, which fits the theme of investors taking more of a defensive posture at this time of year.
Second gold and gold stocks - In recent years this asset class and sector also tends to outperform this time of year, which also fits the defensive theme over the summer. One factor that contributes to the increase in demand is the Indian festival and wedding season October and November. Also, according to the World Gold Council, global central banks have become net buyers of gold from being net sellers in years past.
And finally third - Oil stocks experience a second wave of out-performance as production switches to building heating oil inventories in advance of the cold weather, plus hurricane season can wreak havoc on production in the Gulf.
GB
Second gold and gold stocks - In recent years this asset class and sector also tends to outperform this time of year, which also fits the defensive theme over the summer. One factor that contributes to the increase in demand is the Indian festival and wedding season October and November. Also, according to the World Gold Council, global central banks have become net buyers of gold from being net sellers in years past.
And finally third - Oil stocks experience a second wave of out-performance as production switches to building heating oil inventories in advance of the cold weather, plus hurricane season can wreak havoc on production in the Gulf.
GB
Labels: The Last Hour
posted by Gordon Bell at
11:00 AM
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