Morning Brief – March 10, 2022

So much for hopes of a cease-fire.

As reported by CNBC “Talks between Russia and Ukraine have failed, with foreign ministers from both countries making no progress on a potential cease-fire agreement. The discussions came a day after Russian forces bombed a maternity hospital in Mariupol.”

With tensions rising further, investors are still investing heavily in gold, which is now back above $2,000. From here, the metal could even test $2,500, given the uncertainty.

Goldman Sachs for example says that’s possible.

In fact, according to Business Standard, “The last time that we saw all major demand drivers accelerate simultaneously was in 2010-2011 when gold rallied by almost 70 per cent. Given the material upward revision in investment and demand assumptions, we now upgrade our 3 /6 / 12-month gold targets from $1950/2050/2150 an ounce to $2300/2500/2500 per ounce,” wrote Mikhail Sprogis, Sabine Schels and Jeffrey Currie of Goldman Sachs in a recent note.”

With investors flocking back to the safe havens of gold, stocks like Barrick Gold (GOLD) and Newmont Corp. (NEM) could do well. Even gold ETFs could run, including:

The VanEck Gold Miners ETF (GDX)

With an expense ratio of 0.51%, the GDX ETF offers diversification with Newmont Corporation, Barrick Gold Corporation, Franco-Nevada Corporation, Kirkland Lake Gold, and Royal Gold Inc. to name a few. After running from $29 to $40, the ETF pulled back slightly. That weakness may be an opportunity.

Direxion Daily Gold Miners Index Bull 2s Shares (NUGT)

Some of NUGT’s top holdings include It has holdings in Newmont Corporation, Barrick Gold, Franco-Nevada, Royal Gold, and Kirkland Lake Gold, as well.

Markets

  • The Dow is down 361 points to 32,904
  • The S&P 500 is down 48 points to 4,227.25
  • The NASDAQ is down about 208 points to 13,527.50
  • Gold prices are up $14.54 to $2,005.01
  • Bitcoin is down 6.3% to $39,279.20
  • Oil prices are up $4.14 to $112.40
  • The VIX is down 1.28 points to 33.85

Trading Tips

Over the last few months, Bitcoin was cut in half.

From a high of $68,978, it plummeted to a low of about $35,000.

However, after catching major support dating back to mid-2021, Bitcoin is showing strong signs of life. Helping, President Biden just announced an executive order on cryptocurrencies.

In fact, according to CNBC, “Biden’s executive order attempts to address the lack of a framework for the development of cryptocurrencies in the U.S., which critics say could leave the country’s industry behind the rest of the world.” The order also directs the U.S. government to explore a potential central bank digital currency.

In addition, according to NBC News, “Although a U.S. digital currency would not necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banking, as well as government sanctions, banking accessibility and taxes.”

So how do we profit from that?  Read more here.

Insider Buying: Caesars Entertainment (CZR)

On March 8, CEO Reeg Thomas bought 10,000 shares at an average price of $71.38 for $713,755. Director Michael Pegram also bought 13,000 shares for $895,526.

Helping, Loop Capital analysts just raised its CZR price target to $109 from $99, with a buy rating. As noted by TheFly.com, “The company could announce a Las Vegas Strip asset sale as soon as in the next three months, and a high valuation mark for the divestiture should serve as a positive catalyst for Caesars shares.”

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