With the stock market continuing to hit all-time highs almost daily, investors are looking for the next sector rotation to make big returns. One sector that is due for a major rotation in the coming months is gold stocks.
John Feneck of Godzilla Newz has identified 10 gold stocks that are the most likely to trigger a major sector rotation. He has analyzed the recent movements in the gold sector and the news that is coming out to paint an outlook for the future.
Gold stocks have been underperforming for a long period of time, but the trend is now starting to turn. John Feneck of Godzilla Newz says the biggest factor driving the sector rotation is the outperformance of the U.S. dollar. Specifically, investors are piling into safe-haven assets, like gold, as they look to hedge against a weakening U.S. economy.
The 10 gold stocks identified by Feneck are the top picks for sector rotation right now, as gold prices are expected to continue to climb in the near future. He says the stocks that are most likely to benefit are Barrick Gold Corporation (TSE: ABX), Kinross Gold Corporation (TSE: K), Alamos Gold Inc (TSE: AGI), Endeavour Mining Corporation (TSE: EDV), and Newmont Mining Corporation (NYSE: NEM).
Besides these large gold producers, Feneck also believes there are a few smaller stocks that investors should pay attention to, like Osisko Gold Royalties (TSE: OR) and Wheaton Precious Metals Corp (TSE: WPM). The key with these stocks is to find the ones with the best fundamentals and the most potential for upside.
Finally, Feneck also states that investors should keep an eye on gold ETFs like Sprott Gold Bullion Fund (TSE: SGB) and Central Fund of Canada (TSE: CEF). While ETFs don’t provide direct exposure to individual gold stocks, they are still a great way to gain broad exposure to the sector.
In conclusion, John Feneck of Godzilla Newz believes gold stocks are due for a sector rotation in the coming months. The U.S. dollar is weakening and investors are piling into safe-haven assets, making gold the best bet right now. Therefore, investors should keep an eye on the stocks he has identified as the most likely to benefit from this rotation.