Our E-wave Artificial Intelligence model forecasts a modest uptick in rates going into the March FOMC meeting. However, the rate outlook turns lower into mid- to late-April. This means that 10-year note yields will see 2.25% before embarking on a decisive climb higher.
Factors limiting the advance in yields include the U.S. debt ceiling showdown, lack of clarity of Trump’s pro-growth proposals, low global interest rate environment and uncertainty surrounding French elections in April.
After topping in February, junior gold miners turned sharply lower in early March. And it looks like there’s more where that came from heading into a bottom later this month and into the early April time frame. The near-term cycle warrants getting a little more aggressive in acquiring Royal Gold.
CANCEL AND REPLACE your existing good-till-canceled order, using 3 percent of the funds you have allocated to Income Investments, to buy Royal Gold, Inc., symbol RGLD, at $60 or better. NEW PRICE: $63.10 or better. When filled, place a good-till-canceled protective sell-stop at $54.89.
In the meantime, …
Hold Westlake Chemical Partners LP (WLKP), from roughly $19.75 … and maintain a good-till-canceled protective sell-stop at $18.07. Your position has open gains of 33.3 percent, including an annualized dividend yield of 5.09 percent.
If not on board WLKP, use 5 percent of the funds you have allocated to Income Investments and place a good-till-canceled order to buy at $21.00 or better. Be sure to place a good-till-canceled protective sell-stop at $18.07.
Hold shares in GAMCO Global Gold, Natural Resources & Income Trust (GGN) from about the $6.27 level, and maintain a good-till-canceled protective sell-stop at $4.21. While trading slightly below your entry level, it sports a generous dividend yield of 11.8 percent. Reinvest the dividends to compound your return.
If not on board, you may purchase GGN at the market, using 5 percent of your Income Investments funds. Place a good-till-canceled protective sell-stop at $4.21.
