May 11, 2020 - Economy

Gold mining stocks outpace Big Tech amid coronavirus crisis

Reproduced from The Felder Report; Chart: Axios Visuals
Reproduced from The Felder Report; Chart: Axios Visuals

The FANG stocks (Facebook, Amazon, Netflix and Alphabet's Google) have performed well so far this year in the face of the coronavirus pandemic, but their returns have been dwarfed by the BANG stocks (Barrick, Agnico Eagle, Newmont and Goldcorp).

What it means: Investors have holed up in tech companies believing they are strongly positioned to weather the storm, but gold miners have driven significantly more value over the past two years. Since early May 2018, BANG has nearly tripled the gain of FANG, Jesse Felder of the Felder Report notes.

  • "Part of this dramatic outperformance is due to rising gold prices which have boosted revenue growth for the BANG stocks."
  • "Combine this with the fact that these stocks were trading at significant discounts to their historical valuations and you have a recipe for an explosion higher in prices."

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