I've been saying for some time that the u.s. Federal Reserve would be unable to follow through on its promises to raise rates at an aggressive pace. Given how stocks have reacted over the past month, the markets are coming to this same conclusion.

The S&P 500 has recently dipped to 1,850, a level last seen nearly two years ago. Almost 85% of the index is in correction territory – or worse.

Now the United States has joined the rest of the world in a profound bear market. But, like the wise saying goes, there's always a bull market somewhere.

As the tides may now have turned, that bull market appears to be in the precious metals sector. It's been absolutely crushing the rest lately.

So, today I'm going to show you some charts that point to positively gargantuan profits ahead – particularly for this one stock.

Have a look at this…

Gold Stocks Will Continue to Outperform in 2016

In a recent meeting with an executive from an Australian gold miner, he confided that a large Wall Street bank said precious metals is one of the only sectors seeing fund inflows.

Their take is that hedge funds are recognizing the deep value of a sector that's quickly gaining traction, and they're anxious to make up for their weak performance in 2015.

Well, that call is looking pretty sound, and I'm going to show you some compelling reasons why gold and gold stocks are both cheap and primed to move considerably higher from here.

Gold Stock Catalyst No. 1: The Dollar Could Be Running Out of Gas

After rising by an astounding 25% against its peers between mid-2014 until last month, the u.s. dollar Index (USDX) is showing signs of cracking.

Of course the strength exhibited by the USDX came on the back of the Fed talking up its end to QE and the beginning of a rising rates cycle.

The last time the USDX closed above 100 was the week before the Fed officially raised rates in mid-December. Since then it had a sharp sell-off, followed by a rally which failed to hold above its 50-day moving average.