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Defensive Themes and Gold Stocks Shine in 2016

Looked at a list of the best performing stocks this year? If you have, you've probably noticed a big concentration of large-cap defensive stocks, gold miners, and basic material stocks among the list of top performers.

Continuing the themes outlined in my January 2016 posts, defensive groups such as food stocks, REITS, and utilities have shined throughout the first half of 2016. Snapshot of these leading groups' ETFs with their year-to-date performance below. Click to enlarge (charts via Finviz.com).

Gold Miners ETF, GDX up 112% YTD.



Consumer Staples ETF, XLP up 10% YTD.



Utilities ETF, XLU up 23% YTD.




Now that we're heading into the summer and the second half of the year, will these trends persist?

Here's our update to email subscribers on gold stocks from Finance Trends Newsletter #2:

"...Let's look at a group that is shifting into a dynamic new uptrend. Gold and silver mining shares have been among the year's top performers. I highlighted several of these mining stocks back in January. Let's see how they, and a few others, have fared since.

Here's a quick roundup of the gold stock leaders in 2016:

Barrick Gold (ABX) +182% YTD
Harmony Gold (HMY) +287% YTD
DRD Gold (DRD) 284% YTD
Richmont Gold (RIC) 189% YTD
Kinross Gold (KGC) 176% YTD

And so on...

Some of the smaller names such as Tower Hill Mines (THM) and Vista (VGZ) have gone up even more. The question is, will the new uptrends in gold and gold mining shares continue into the 2nd half of the year and beyond?"

You can click through above to read more about the gains in defensive shares and dividend payers like RAI, MO, CPB, ED, XEL, and CWT. Many of these names were highlighted as relative strength outperformers in our January posts. They have continued to move higher and reward their holders, even as the S&P 500 and international stock markets have faltered in recent weeks.

If you'd like to keep up with all our updates on these market trends, and find out how I'm investing in some of these themes, sign up for our free newsletter below.

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