Chief Investment Strategist Alexander Green claims he is not a market timer.
But that’s not exactly true.
He makes an exception at what he calls “inflection points.” Those are the times when valuations and sentiment are so extreme that you can set aside a market-neutral stance and safely bet against the crowd... for maximum profits.
Over the last decade, he’s called the oil bubble, the gold top, the dollar reversal and the stock market bottom with uncanny accuracy.
This is not just hindsight or cherry-picking. Our archives - and his past columns - are an open book for anyone to read. As his editor, I have the actual quotes from his Investment U columns to prove it.
For instance, as oil was hitting all-time highs a few years ago, he called it “the mother of all bubbles” and declared that “high prices always sow the seeds of their own collapse. Consumers start to conserve. Producers search for oil that was once too costly to extract. Supply and demand come back into balance.”
He advised natural resource investors to move quickly to lock in their profits. Some readers jeered. Others scoffed.
But they’re not scoffing today as the oil patch goes through its own private depression.
Near the same time, as gold peaked at more than $1,900 an ounce, he was again skeptical - and told investors to take profits:
“The price of gold and silver are now way above the marginal cost of production. When that happens, you get new supply. Yes, it takes time but - trust me - it’s coming... Take a look at gold equities. While the price of the barbarous relic keeps rising, you’ll notice the gold stock index is no longer tagging along... The smart money is betting that today’s high prices won’t be sustained.”
Gold bugs would have none of it, of course. But today the metal is down 48%.