Fred Hickey: Gold starts secular bull, tech ends secular bear

Fred Hickey is bullish. This is big news. He has sold all of his puts for the first time in years and is now playing the markets from the long side. His favorite picks are in precious metals and technology.

Fred Hickey recently participated in the Barron’s Anuual Roundtable Forum. And his comments come as a result of those discussions.  Hickey sees the Federal Reserve and other central banks printing money and knows that this will mean inflation when the economy turns around. Therefore, he is buying gold and gold mining shares. Hickey also notes that Microsoft, Intel and other big cap technology stocks are trading at near single-digit trailing price-earnings ratios. This is because he believes technology has been in a bear market since the Nasdaq started to melt down in 2000. He’s a buyer at these prices.

In the video below, Hickey explains what he is buying and why. Hickey’s move to the bullish side of things is real news because he has been bearish for quite some time. For what it’s worth, I agree with Hickey, but would caution that his sentiments do not necessarily translate into the broader stock market.

Note: In the links yesterday, I also linked to a video of Meryl Witmer (another Barron’s Roundtable participant) and her picks.