Politicians Like to Spend Big Money … How to Profit From It

Have you ever thought a movie would be super boring, but it was actually great?

That’s how I feel anytime I write about tax-loss selling.

It doesn’t sound exciting, but it can be very lucrative.

We’ve been able to use this strategy at the end of recent years with gold stocks. But this year, gold stocks are up, even after Monday’s drubbing.

So, what should we do now?

Using the Tax Law to Make Money

First, let’s assess where we are.

The Sprott Gold Miners ETF (NYSE: SGDM) and the Sprott Junior Gold Miners ETF (NYSE: SGDJ) own large-cap and smaller mining shares. These two exchange-traded funds (ETFs) are up 27% and 36%, respectively, so far this year.

Most of the names in these funds are up as well. That provides fewer tax-loss selling opportunities in this space.

Here’s why.

When you sell shares that have fallen during the year, you can apply the losses to offset other gains in your portfolio.

If you want to buy back the same stock though, you normally have to wait to do so … often a month. This is a rule of the tax authority in most countries.

If you don’t wait, you can’t use the losses to offset other gains. If you buy the same name back too early, it’s called a “wash sale.”

So, this year, we have fewer gold-related tax-loss selling opportunities.

In the past week though, we have seen a new golden opportunity.

Gold and Gold Stocks Sold off Post-Vaccine

When Pfizer Inc. and BioNTech SE announced that their vaccine prevents COVID-19, some stocks fell.

For example, work-from-home stock Zoom Video Communications Inc. (Nasdaq: ZM) fell 25% from Friday to Tuesday. The logic is that people won’t need the service as much if they go back to work.

Another asset class that fell was gold and gold stocks. The gold price was down as much as $100 an ounce on Monday.

The market is suggesting that if we have a vaccine, then we won’t need as much stimulus.

And stimulus is bad for the dollar. This is good for the price of precious metals.

I don’t believe it.

Politicians can’t help themselves.

When President Barack Obama was in office, the national debt rose more than $9 trillion. I don’t expect his former vice president to be more prudent. Do you?

His successor, President Donald Trump, was even worse. The national debt is up more than $7 trillion on his watch in only four years versus Obama’s eight.

And these numbers don’t count the money the Federal Reserve created.

My friends, in a nutshell: We’re screwed.

Politicians Will Continue to Spend Money We Don’t Have

When he takes office, President-elect Joe Biden will hand out money we don’t have to lots of people.

Many think it doesn’t matter. Interest rates are low, they say. We can service our debt.

And we have the world’s reserve currency. We can print as much money as we want.

Yes — until our currency loses more value and printing doesn’t solve the problem.

If you think it doesn’t matter, all you have to do is look at the price of gold.

It’s up more than 50% since the last inauguration — almost as much as the S&P 500 Index. But we don’t hear our politicians celebrating that, do we?

Think about it. What have you heard about Biden’s plans?

  • “Biden Announces $2 Trillion Climate Plan” (The Wall Street Journal).
  • “Biden … has no plans for major defense cuts” (Stars and Stripes).
  • “Biden already has a stimulus plan” (CNet.com).

Those are just a few. Mark my words: There’s more spending to come.

Even when the economy was humming in 2019, Trump oversaw a $984 billion deficit.

If our next president improves on that, we’re still likely to bleed cash.

What You Should Do

Whenever the price of gold falls, take advantage of it. It’ll come back.

Since last Friday, gold is down as much as 5.1%. SGDM and SGDJ fell 9% and 6%, respectively.

This is a buying opportunity. Seize it.

And with respect to tax-loss selling, I encourage you to look into value names. Many of them are still down for the year but are moving higher with the vaccine.

This includes banks, energy, real estate and travel-related stocks.

Good investing,

Brian Christopher

Editor, Profit Line

Previous Post
Next Post

Comments

storno brzinol

It’s the best time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I desire to suggest you some interesting things or suggestions. Perhaps you could write next articles referring to this article. I want to read more things about it!

judi bola

I am no longer sure the place you’re getting your information, however great topic. I must spend some time studying much more or figuring out more. Thank you for excellent information I was in search of this information for my mission.

Samson

[url=http://cialispillsbestbuy.com/]generic tadalafil australia[/url]

Kiason

[url=http://modefinil.com/]provigil in canada[/url]

slot online ygg

I am curious to find out what blog system you’re utilizing? I’m having some small security problems with my latest site and I would like to find something more risk-free. Do you have any solutions?

Barrett Rifles For Sale

604949 349151Im sure your publish and internet site is extremely constructed 170370

1p lsd

616758 222445Can I just now say that of a relief to locate somebody who truly knows what theyre speaking about online. You truly know how to bring a difficulty to light and function out it crucial. The diet need to have to see this and appreciate this side on the story. I cant believe youre no far more popular since you certainly possess the gift. 262779

minecraft sex games

free online non download sex games for teens https://cybersexgames.net/

golden nugget online casino pa

mobile online casino https://casinoonlinek.com/

best michigan online casino

online caesars casino https://onlinecasinoad.com/

online casino like chumba

reddit online casino https://casinogamesmachines.com/

best online casino promotions

new vegas casino online https://conline-casinos-hub.com/

foxwoods online casino promo code

best online casino welcome bonus https://onlinecasinos4me.com/

new michigan online casino

lucky creek online casino https://online2casino.com/

casino borgata online

soaring eagle online casino https://casinoonlinet.com/

writing a conclusion for an essay

writing essays in college https://anenglishessay.com/

write a descriptive essay

narrative essay writing https://yoursuperessay.com/

online essay writing services

write a narrative essay https://howtowriteessaytips.com/

creative writing essays

help writing essays https://checkyouressay.com/

dating service for gay men

gay dating in olympia wa https://gayprideusa.com/

guide to critical thinking

critical thinking assessments https://criticalthinkingbasics.com/

critical thinking images

steps to critical thinking https://criticalthinkinginstitute.com/

intellectual traits of critical thinking

critical thinking videos https://criticalthinking2020.net/

what is critical thinking process

critical thinking problem https://uncriticalthinking.com/

essay creator

process essay examples https://thebestvpnpro.com/

persuasive essay outline

how to start off an argumentative essay https://vpn4home.com/

Fefbshear

generic cialis tadalafil 20 mg from india tadalafil 40 mg reviews

zomenoferidov

Today, I went to the beach front with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!

Djehensub

ivermectin oral 0 8 ivermectin oral 0 8

CennSnali

stromectol pill for humans ivermectin for humans

Fefgshear

tadalafil from nootropic review tadalafil without prescription canada

KwghGlify

tadalafil citrate powder tadalafil eli lilly

Fefgshear

que es tadalafil 10mg tadalafil

AmsmWeeriobre

where can i buy stromectol ivermectin

KbvGlify

where can i buy stromectol ivermectin 6

Febcshear

ivermectin medication generic stromectol

AmssmWeeriobre

ivermectin cream 1% ivermectin australia

Dgwiensub

ivermectin tablets ivermectin uk

TravisVem

how long is viagra effective what would happen if a woman takes viagra where to buy generic viagra

Rkgjensub

ivermectin buy nz stromectol uk

KbwvGlify

ivermectin 0.5 lotion india stromectol where to buy

CehhSnali

ivermectin 3mg tab stromectol order

air tickets cheap flights

I think the admin of this web page is genuinely working
hard for his website, for the reason that here every stuff is quality based stuff.

flights cheap

Excellent article. Keep writing such kind of info on your blog.
Im really impressed by your site.
Hi there, You’ve done a fantastic job. I’ll definitely
digg it and in my view recommend to my friends.
I am confident they will be benefited from this site.

cheap plane tickets

It’s very simple to find out any topic on web as compared to books, as I found this article at this website.

mavix gaming chair

I’m not sure exactly why but this weblog is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I’ll check back later on and see if the problem still exists.

find cheap flights

Thanks for the marvelous posting! I definitely enjoyed reading it, you could be a great author.I will remember to bookmark your blog and will
come back in the future. I want to encourage continue your
great posts, have a nice weekend!

airline flights

I enjoy what you guys are usually up too.
This kind of clever work and reporting! Keep up the superb works guys I’ve incorporated you guys to
our blogroll.

Febbshear

price of stromectol buy stromectol canada

air tickets booking

Sweet blog! I found it while browsing on Yahoo News.
Do you have any suggestions on how to get listed
in Yahoo News? I’ve been trying for a while but I never
seem to get there! Cheers

Dbwiensub

buy ivermectin stromectol stromectol liquid

CbshSnali

stromectol buy uk ivermectin 500ml

Fnenshear

buy viagra online viagra dosage

Dbngensub

sildenafil 50 mg sildenafil cialis

KeezGlify

sunrise tadalafil review tadalafil 60mg

Chate Sexe Anime Viole Pudlice Homme Doure

335557 237693Absolutely pent subject matter, appreciate it for selective information . 394135

Fwbnshear

sildenafil cenforce 200 mg maxifort zimax sildenafil 50 mg

Dennensub

drug store news ce pharmacy tech canadian online pharmacies methadone

Fuupshear

sildenafil coupon walgreens can i take sildenafil daily

AnuoWeeriobre

offshore pharmacy no prescription advair capsules canadian pharmacies online

Dsnnensub

optumrx pharmacy Prozac

Nbttensub

best price cialis 20mg generic cialis online

KnrnGlify

buy prescription drugs without doctor buying drugs online from canada

Auupshear

tadalafil and sildenafil together tadalafil 10 mg

AnnoWeeriobre

viagra pills generic brand how to buy sildenafil

Jtnnensub

ivermectin dispersible tablets ivermectin poultry

Zbttensub

horse ivermectin for dogs topical ivermectin for rabbits

Jnnyensub

cialis brand no prescription 365 lowest price on cialis 200 mg

nyyyensub

levitra or viagra which is best effects levitra side

EnnsGlify

where to buy generic viagra over the counter cheap viagra fast delivery

JyhWeeriobre

cvs pharmacy jobs Minipress

Jmmensub

alpesh pharmacy store charlotte nc lisinopril online canadian pharmacy

Ntcxensub

accredited online pharmacy tech programs xarelto canada pharmacy

WnnhSnali

cvs store hours pharmacy canada mail order drugs

Montediz

[url=http://cheapdrugs.store/#]viagra without a doctor prescription walmart[/url]

Myxnpd

us viagra sales – sildenafil 150mg tablet sildenafil pharmacy

Jebnensub

canadian compounding pharmacy association express scripts online pharmacy

Dpjteq

buy prednisolone pills – brand gabapentin 800mg order tadalafil 20mg online

Hbcuoa

cost augmentin 375mg – cialis 5mg brand order cialis 5mg sale

Ekwvis

buy bactrim pills – viagra 100mg ca order viagra generic

Zruovx

rhinocort order – budesonide pills antabuse 250mg over the counter

rjqozary

modafinil price order modafinil 200mg pill modafinil cheap

Emwbpl

ceftin 250mg us – buy cefuroxime 500mg generic order tadalafil pill

igpgsniu

provigil buy online buy provigil 100mg without prescription oral modafinil 200mg

sxyxyeun

generic provigil 200mg modafinil 200mg usa

Jebnensub

pharmacy online com cialis super active

hltvtguk

provigil online order order modafinil sale

zfnjghhq

cost provigil 100mg modafinil 200mg price

xakyyjks

modafinil without prescription buy provigil 200mg online purchase provigil without prescription

Tvxsmt

amoxil 250mg oral – cheap zithromax 250mg purchase vardenafil

canadian pharmacy online ship to usa
best online international pharmacies
Okfyyr

deltasone 10mg canada – isotretinoin over the counter buy isotretinoin 40mg without prescription

Stfrrh

prednisolone 10mg us – neurontin 600mg ca sildenafil 150mg sale

Oydadf

order generic lasix 40mg – lasix sale ivermectin 3mg dose

Ralphshege

cialis fastest shipping tadalafil

Knelqk

lisinopril 2.5mg cost – lisinopril 10mg usa purchase atenolol online

Bradleymek

how to get prescription drugs without doctor discount prescription drugs

hire a hacker for gmail

You made some nice points there. I looked on the internet for the subject and found most individuals will agree with your site.

cell phone hackers

You made several nice points there. I did a search on the subject matter and found mainly persons will have the same opinion with your blog.

Bffdns

buy tadalafil 40mg without prescription – cialis 20mg us tamsulosin 0.4mg over the counter

zorivare worilon

Today, I went to the beach with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

RobertScums

https://diflucan.icu/# diflucan prescription australia

zorivareworilon

Some genuinely choice posts on this website , saved to favorites.

RobertScums

https://erectionpills.best/# non prescription ed pills

Leave a Reply

Your email address will not be published.