Hedge Your Funds in Gold Stocks

Financial Sector (XLF) has dropped 6.02% last week. Over 52 weeks, it has dropped about 47.77%. Since October peak last year, S&P 500 has dropped about 20%. Those are the facts that we are currently in bear market. Let’s look at the tables below. It shows some details of performance indexes:

Weekly & YTD Performance

Index	Start Week	End Week	Net Chg	% Chg	YTD Chg
DJ-30	11,288.54	11100.5	-188.0	-1.7%	-16.3%
Nasdaq	2,245.38	2239.1	-6.3	-0.3%	-15.6%
SP-500	1,262.90	1239.5	-23.4	-1.9%	-15.6%
Russell 2000	665.78	675.0	9.2	1.4%	-11.9%

ETF Sector Patrol Weekly & YTD Performance

Sector	% Chg Weekly	YTD Chg
Consumer Staples	0.56%	-6.49%
Consumer Discretionary	-4.18%	-18.07%
Energy	-3.61%	3.09%
Financials	-6.51%	-35.43%
Health Care	0.98%	-12.72%
Industrials	-0.96%	-15.50%
Basic Materials	0.10%	-5.47%
Technology	-0.98%	-16.65%
Telecom	-0.22%	-22.09%
Utilities	0.00%	-4.42%

Market Fundamentals

Index	Price	P/E	P/E	P/E	Div	Earnings	Price
		(TTM)	(1 Yr Ago)	(Fwd)	Yield	Yield	Book
DJ-30 (Indu)	11100.54	75.95	18.41	11.94	2.92	1.32	3.34
DJ-20 (Trans)	4776.74	22.32	16.94	22.16	1.34	4.48	2.53
DJ-15 (Util)	517.87	15.77	20.99	15.51	3.05	6.34	2.67
SP-500	1239.49	20.35	18.25	13.56	2.50	4.87	2.46
Nasdaq	2706.16	27.76	36.68	20.30	0.56	n/a	n/a
Russell 2000	785.52	72.35	40.88	23.67	1.91	n/a	n/a

*Source: Birinyi Associates

The Markets are in tremendous uncertainty conditions and head to fall. It will drag investors down to suffer more big losses. But all those that are suck do not mean we cannot find any opportunities to invest in the market. There are still bullish in gold sector rather than we attempt to find other stocks that might be recommended as stocks that proof from market downswing. Recession proof stocks do not ensure investors that they will be safe from sucker rally and market turbulence. Gold stocks were mostly under correction since late June as Oil Prices were corrected. As raising credit meltdown panic that was driven by collapsing Fannie Mae (FNM), Fraddie Mac (FRE), and Lehman Brothers (LEH) on last Friday; mostly Stocks were red but Gold Stocks were green. Here is a list of last change of Gold Stocks on last Friday:

Name	Symb	Last Price	Change	52 Wks Hi	52 Wks Lo	Eps	PE
Freeport-McMoRan Copper & Gold…	FCX	107.74	+1.99 (1.88%)	127.24	67.07	8.63	12.5
Barrick Gold Corporation (USA)	ABX	49.21	+2.49 (5.33%)	54.74	28.89	2.04	24.2
AMERIGROUP Corporation	AGP	23.37	+0.24 (1.04%)	41	19.92	2.41	9.69
Newmont Mining Corporation	NEM	51.27	+2.09 (4.25%)	57.55	38.01	-3.5
Vista Gold Corp.	VGZ	4.45	+0.33 (8.01%)	7.87	3.17	-0.5
Goldcorp Inc. (USA)	GG	48.29	+2.43 (5.30%)	49.25	21	0.79	60.8
Kinross Gold Corporation (USA)	KGC	23.31	+0.80 (3.55%)	27.4	9.87	0.55	42.1
Alumina Limited (ADR)	AWC	17.25	+0.43 (2.56%)	32.85	15.03	1.47	11.8
Agnico-Eagle Mines Limited (USA)	AEM	75.58	+2.73 (3.75%)	83.45	34.24	1.02	74.4
Claude Resources Inc. (USA)	CGR	0.97	-0.02 (-2.02%)	1.75	0.81	-0.1
IAMGOLD Corporation (USA)	IAG	6.13	+0.17 (2.85%)	10.43	5.59	-0.1
Mag Silver Corp (ADR)	MVG	8.7	-0.07 (-0.80%)	18	8.63	-0.2
Pan American Silver Corp. (USA)	PAAS	35.22	+1.51 (4.48%)	44.1	20.8	1.24	28.4
Golden Star Resources Ltd. (USA)	GSS	2.5	+0.12 (5.04%)	4.38	2.16	-0.2
Great Basin Gold Ltd. (USA)	GBN	3.56	+0.07 (2.01%)	3.85	1.82	-0.3
Eldorado Gold Corporation (USA)	EGO	8.56	+0.33 (4.01%)	9.34	3.25	0.13	67.9
Coeur d'Alene Mines Corporation	CDE	2.56	+0.03 (1.19%)	5.18	2.32	0.1	25
Silver Wheaton Corp. (USA)	SLW	15.08	+0.97 (6.87%)	19.54	9.72	0.38	39.5
Randgold Resources Ltd. (ADR)	GOLD	51.09	+4.04 (8.59%)	56.15	20.83	0.6	84.8
Gold Fields Limited (ADR)	GFI	12.46	+0.44 (3.66%)	19.915	10.66	0.89	14
Yamana Gold Inc. (USA)	AUY	14.91	+0.96 (6.88%)	19.93	8.4	0.39	38.2
Harmony Gold Mining Co. (ADR)	HMY	12.19	+0.85 (7.50%)	15.27	8.41	-0.3
Northgate Minerals Corporation...	NXG	2.65	+0.13 (5.16%)	3.49	2.4	0.2	13.4
Hecla Mining Company	HL	9.45	+0.59 (6.66%)	13.14	6.58	0.46	20.4

Gold stocks usually move in the opposite direction of market panic. Finally, the chart below becomes an evident that people never flees away from gold:

*Source: Roland Watson

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

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