Vanguard just threw in the towel on a Metals and Mining Fund. It morphs into a Global Capital Cycles Fund.
Sentiment is not a timing mechanism, but gold bearishness is mounting in a market that has gone sideways for years.
Vanguard couldn't take it any more.
"The $2.3 billion Vanguard Precious Metals and Mining Fund (VGPMX) will be renamed to Vanguard Global Capital Cycles Fund as part of a restructuring intended to broaden the fund's mandate and diversify its portfolio." They don't ring bells at tops&bottoms?https://t.co/cGqBPu9B3E— fred hickey (@htsfhickey) July 27, 2018
AFTER the huge 30%, 6 month climb in gold (160% up for gold stocks) in the summer of 2016, Schwab sent to its customers a "Guide to Investing In Gold." It was the death knell for the rally. Haven't been able to break through that top since. Maybe now we have the sign (Vanguard).— fred hickey (@htsfhickey) July 27, 2018
At the top late 99, many funds changed name to include “internet” in them.— Gary Kaltbaum (@GaryKaltbaum) July 27, 2018
This may not be "the bell" but it is a bell. Despite the recent declines, many miners are up tremendously off the lows.
Hey, let's throw in the towel and buy something that trending. Maybe we should short gold. Facebook sure looked attractive last week.