We didn’t add Gold (GLD) to the long side of our Macro Best Ideas until we could see what Gold loves more than anything else (Down Dollar, Down Rates – at the same time) in play.
The question now? How fast can the U.S. data slow before ECB President Mario Draghi has to do EuroQE? That will be an up-Dollar #Deflation event. Stay tuned.
Back on August 28th, we advised Hedgeye subscribers to buy GLD in Investing Ideas. As you can see in the chart below, the recent run-up has been a profitable one for our subscribers. (Our view was based on slower U.S. economic data and our view that the Fed would keep rates #LowerForLonger.)
Since then, GLD is up 5.1% versus the S&P up just 1.9%. Right now, as an immediate-term trade, Gold looks overbought. It’s time to book some gains.
Editor's Note: Click here for more non-consensus investing ideas.