Getting cash for gold
Gold is approaching the end of its rally, and emerging-market stocks are looking better.
Gold is near its all-time high of $1,227.50 an ounce, set on Dec. 3, 2009, and you don't have to look far to find the reasons -- the European debt crisis and inflation fears in China come to mind.
I do think gold could run higher from here, though. The debt crisis isn't over, considering that the credit-rating companies that haven't rated Greek government bonds as junk are threatening to do so. And I think we'll see at least one more spasm of fear from China.
But I think the risk/reward ratio is shifting. Gold is getting closer to the end of its rally and emerging-market stocks are getting closer to the beginning of their recovery.
So I'm going to exit this trade to raise some cash for an eventual move into China and other emerging markets. Not yet, mind you, but soonish. (For more on China's bear market in stocks and what's behind it, see this recent post.)
As of Tuesday, I'm selling Market Vectors Gold Miners ETF with a 10.3% gain since I added it to the Jubak's Picks portfolio on April 8.
At the time of this writing, Jim Jubak didn't own shares of any stock or ETF mentioned in this post.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.