The Most Compelling, Overlooked Bargains in a Melting Stock Market

NEW YORK (TheStreet) -- The current stock market sell-off is beginning to make some investors feel a bit queasy.

Investor sentiment hasn't reached the gut-wrenching or the panic levels yet. But traders and investors I've spoken to are almost numb, cautious and cynical.

Just when they hope they've found a good entry point, the next wave of lousy news headlines causes almost all kind of investments, from commodities to equities, to fall more.

Now here's an intuitive hunch. What if the Federal Reserve Board and Chairman Ben Bernanke are biding their time as the gloom-and-doom outlook is unveiled systematically?

What if in the midst of a politically charged year in both the U.S. and Europe, those who dominate their respective nation's monetary policies need more angst.

Perhaps they need more emotional evidence to make the point that ongoing, massive quantitative easing must soon be announced and unleashed once again?

This way, just in the nick-of-time, they can open the money flood-gates and forestall the possibility of more deflation and economic influenza.

If that were to unfold as I've suggested, guess what currently undervalued and almost hated group of stocks would soar like an Atlas missile being launched at The Cape?

Your answer might be the same as mine; the precious metals and the industrial metals stocks.

Of the two, we're seeing rock-bottom prices for the former. It's time once again to look at a composite of the precious metals stocks to really see how depressed and hated they are.

Since a picture paints a thousand words, please click on this one-year chart of the Market Vectors Gold Miners ETF (GDX) which hit yet another 52-week low on Tuesday, May 15.

The green line in the chart shows the 200-day moving average for this ETF which seeks to replicate as closely as possible the price and yield performance of the NYSE Gold Miners Index.

Fifty percent of the fund's holdings are comprised of the following five companies: Barrick Gold (ABX), Goldcorp (GG), Newmont Mining (NEM), Silver Wheaton (SLW) and AngloGold Ashanti (AU).

All of them pay delectable dividends, with AU and NEM paying the highest yields. In the last two days, they've either reached or exceeded their 52-week lows.

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