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Feb. 20, 2012, 8:16 a.m. EST

Bears burned, bug vindicated?

Commentary: Veteran gold bug still likes stocks — and real estate?

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By Peter Brimelow, MarketWatch

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Among Skousen’s other recommendations in Forecasts and Strategies monthly issue published at the beginning of February:

— “Maintain a strong position in high-income stocks and funds, including Aberdeen Asia-Pacific Income Fund Inc. /zigman2/quotes/208935645/composite FAX -1.33% , Western Asset Global Partners Income Fund Inc.  and BlackRock MuniHoldings Quality Fund II Inc. /zigman2/quotes/209307959/composite MUE +0.17%

— “Invest 10% in natural resource stocks that pay high dividends: Enerplus Corp. /zigman2/quotes/200783569/composite ERF +2.49% , Enterprise Products Partners L.P. /zigman2/quotes/205356165/composite EPD -1.25%  and GAMCO Global Gold Natural Resources & Income Trust /zigman2/quotes/202895357/composite GGN -0.56% .

— “Use some speculative funds to invest in Illumina Inc. /zigman2/quotes/203509482/composite ILMN -3.10%  and Cubist Pharmaceuticals Inc. .

— “Permanent Pt /zigman2/quotes/205061618/realtime PRPFX -0.62% , which invests in gold, silver and Treasuries, offers some protection on the downside (especially in Treasuries);

— “Invest in my favorite no-load funds Vice Fund (a series of MUTUALS.com) /zigman2/quotes/206221479/realtime VICEX +0.16% , Janus Triton Fund T Shares /zigman2/quotes/204897386/realtime JATTX -1.20%  Fidelity Select Portfolio Del & Aero /zigman2/quotes/205129745/realtime FSDAX -0.87% , and Baron Growth Fund /zigman2/quotes/205944411/realtime BGRFX -1.04% .”

Intriguingly, Skousen continues his interest in calling the low in residential real estate, which I first noted 16 months ago. See Nov, 2, 2010 column.

Now Skousen suggests the Case-Shiller Home Price Index may show a bottoming pattern and reports asking its inventor, Yale economist Robert Shiller about it at the recent American Economics Association meeting. According to Skousen, Shiller “said he didn’t know, but the index looks promising.”

Needless to say, this view is diametrically opposed to that of the only other investment letter I know that focuses on residential real estate: Sound Advice. See Feb. 15 column.

But Skousen concludes with characteristic confidence:

“No wonder homebuilding stocks such as PulteGroup Inc. /zigman2/quotes/201694804/composite PHM -2.36% , D.R. Horton Inc. /zigman2/quotes/202032328/composite DHI -2.67%  and Toll Brothers Inc. /zigman2/quotes/201912487/composite TOL -1.17% have risen sharply in the past three months. That trend could continue. I’m recommending them in my trading services.”

/zigman2/quotes/208935645/composite
US : U.S.: NYSE American
$ 2.96
-0.04 -1.33%
Volume: 1.08M
Aug. 17, 2022 4:10p
loading...
/zigman2/quotes/209307959/composite
US : U.S.: NYSE
$ 11.64
+0.02 +0.17%
Volume: 48,644
Aug. 17, 2022 4:10p
loading...
/zigman2/quotes/200783569/composite
US : U.S.: NYSE
$ 14.39
+0.35 +2.49%
Volume: 1.88M
Aug. 17, 2022 4:00p
P/E Ratio
6.70
Dividend Yield
1.10%
Market Cap
$3.26 billion
Rev. per Employee
$4.74M
loading...
/zigman2/quotes/205356165/composite
US : U.S.: NYSE
$ 26.96
-0.34 -1.25%
Volume: 3.32M
Aug. 17, 2022 4:00p
P/E Ratio
12.16
Dividend Yield
7.05%
Market Cap
$59.53 billion
Rev. per Employee
$7.47M
loading...
/zigman2/quotes/202895357/composite
US : U.S.: NYSE American
$ 3.56
-0.02 -0.56%
Volume: 431,695
Aug. 17, 2022 3:59p
loading...
/zigman2/quotes/203509482/composite
US : U.S.: Nasdaq
$ 213.02
-6.81 -3.10%
Volume: 1.28M
Aug. 17, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$34.54 billion
Rev. per Employee
$478,673
loading...
/zigman2/quotes/205061618/realtime
US : U.S.: Nasdaq
$ 46.78
-0.29 -0.62%
Volume: 0.00
Aug. 17, 2022
loading...
/zigman2/quotes/206221479/realtime
US : U.S.: Nasdaq
$ 24.57
+0.04 +0.16%
Volume: 0.00
Aug. 17, 2022
loading...
/zigman2/quotes/204897386/realtime
US : U.S.: Nasdaq
$ 28.05
-0.34 -1.20%
Volume: 0.00
Aug. 17, 2022
loading...
/zigman2/quotes/205129745/realtime
US : U.S.: Nasdaq
$ 14.86
-0.13 -0.87%
Volume: 0.00
Aug. 17, 2022
loading...
/zigman2/quotes/205944411/realtime
US : U.S.: Nasdaq
$ 93.44
-0.98 -1.04%
Volume: 0.00
Aug. 17, 2022
loading...
/zigman2/quotes/201694804/composite
US : U.S.: NYSE
$ 43.50
-1.05 -2.36%
Volume: 1.08M
Aug. 17, 2022 4:04p
P/E Ratio
4.84
Dividend Yield
1.38%
Market Cap
$10.31 billion
Rev. per Employee
$2.42M
loading...
/zigman2/quotes/202032328/composite
US : U.S.: NYSE
$ 76.51
-2.10 -2.67%
Volume: 1.78M
Aug. 17, 2022 4:00p
P/E Ratio
4.92
Dividend Yield
1.18%
Market Cap
$27.32 billion
Rev. per Employee
$2.71M
loading...
/zigman2/quotes/201912487/composite
US : U.S.: NYSE
$ 48.91
-0.58 -1.17%
Volume: 1.50M
Aug. 17, 2022 4:00p
P/E Ratio
6.13
Dividend Yield
1.64%
Market Cap
$5.69 billion
Rev. per Employee
$1.84M
loading...

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