CLF – Cliff’s Natural Resources
Why you ask? Because it’s THIS GUY’S favorite pick!
James Altucher also believes the S&P is heading towards 1500 because “stocks are cheap”.
he says the S&P historically trades at 15 times earnings…which is perhaps correct…if you’re talking about bull market tops!
So should us contrarians run out and short the S&P? Well, that’s one idea (and by the way, the latest update on our S&P short position is here).
You might also consider shorting CLF (Cliffs Natural Resources Inc) – if only because it’s James’ favorite pick! And why does he love it, you ask? It supplies iron to China!
(Please don’t let him know that Chinese stocks topped last year…or show him the chart below, you’ll break his bullish heart…)
Not only did CLF not take out it’s previous 2008 highs, but it also topped in April. And check out the recent selling volume!
Disclosure: I will initiate a short position in CLF today
Hat tip to good friend Jonathan Lederer of Lederer Private Wealth Management for sending this gem along!