After falling as much as 14% yesterday, gold was on every investor’s mind today as the metal staged a comeback of sorts, bouncing from $1300/oz to $1372/oz. Hedgeye CEO Keith McCullough co-hosted CNBC’s Fast Money this evening and argued that gold has yet to fully bottom and is capable of declining in price even further. Keith reiterates how he wants to be long consumption stocks when commodities are having a fire sale like they did yesterday. The commodity bubble brought on by the Federal Reserve’s monetary policy has provided an opportunity to take the other side of the short commodities trade; getting long Starbucks (SBUX) is just one example of doing just that.
Skip ahead to 5:10 in the video embedded above for Keith’s full take on the markets.