Show Entire Article
Michael Gurka may have sounded crazy a month ago when he recommended corn as one of the market's best plays, especially after the commodity had just hit an 18-month low.
But a month later Gurka's call stands as the best of June, with corn flying up 27 percent since then and, with a weak crop and scorching weather ahead, likely a solid play for some time yet.
So where does he see the next big move in the markets?
Right in the same commodities space, but in gold and oil, both of which he sees reaching pressure points and about to turn lower.
"There's potentially going to be a short squeeze here in metals and energy — gold and crude," said Gurka, managing director of Spectrum Asset Management in Chicago. "If you start seeing crude getting above $93 to $95, that's when you're going to start seeing some pretty good short positions coming in. For gold, $1,625 and north of there, it's mostly the same scenario."
Fundamentals will drive down the prices, Gurka said, basing the belief on the notion that the global economy is in a slowdown mode that will prevent growth-related goods like oil from continuing to rise.
"I'm still really bearish on the economy," he said. "Things eventually are going to start falling apart here."
Data this week backs up the perception that the economy is teetering on the brink of at least a slowdown and perhaps a recession.
Page 1 of 3 | Next PageShow Entire Article
GCCV1 News & Analysis
No recent news available
DATA IS REAL-TIME EXCEPT NOTED WITH *
* DATA DELAYED AT LEAST 15 MINUTES