We have seen an impressive run in U.S. stocks in the past few weeks. Despite all of the bad news out of Europe and the like, the markets have used this as a typical “wall of worry” to climb in price in recent weeks.
The Nasdaq 100 broke out to multiyear highs. Many sectors have broken out to new highs as well. But I expect pullbacks of 3 percent to 7 percent in the coming weeks.
Gold and gold stocks rallied strongly from their December lows. Solar stocks (which I discussed months ago) have bounced strongly. However, now is time for a pause.
Get David Skarica's Gold Stock Adviser — Click Here Now!
Recent news about an impasse in Greek austerity measures and another strike in Greece is probably going to be a cause for a pullback in the markets.
However after such a pullback, I still think we will see a continuation of this rally in the spring. Therefore, I would look for sectors and stocks you like to buy amid such a pullback.
My favorites remain energy, alternative energies, gold and precious metals, which I think will all resume their bull runs sometime by late winter into the spring.
Editor's Note: Get a free copy of David Skarica’s "The Great Super Cycle" — Read More — Click Here Now.
Governments are going to continue to print money so I am more biased toward inflation-oriented plays that will benefit from more inflation going forward.
About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.
© 2023 Newsmax Finance. All rights reserved.