Isn't there a G7 meeting this weekend?
Are we going to receive the silent treatment the world got when things were not going well in 1929 and nobody in CBs and governement dared to talk, or knew what to do? Greenspan will have to talk Tuesday. I cannot see him giving too many encouraging comments because this could fuel this stock market to a terminal irrational and lunatic buying frenzy. We will have to listen to him and if necessary, read between the lines. May be he would like to see a rounding top of the stockmarket, but these are actually very bad for the "uneducated investor" as well... it ends up generally by an acceleration of the downtrend. So his next "smooth landing" maneuver, might not be sucessful. CBs and governments are very nervous, IMHO.
I guess the Olympics, Iraq, Clinton's affair, "anthrax" case are more important... and help turn attention away from the great fissure in world economy that Asia created, with million impoverished. There is now great ongoing currency plays by astute investors (probably damaging the whole system). The Asian crack is only but one of many fissures that will weaken this bull market (despite what the pundits say). If this crak in the corner of the windshield is "small" it weakens the whole windshield and other "small fissures" will slowly but surely bring this market to a severe correction.
The next thing that will help gold and bring the market to a severe correction/depression is the sudden stop in buying expensive items by the babyboomers while they try to save for college, and invest in the stockmarket and make their payment on their extended credit line. Layoff will occur in some industries as a consequence of reduced buziness in some industries... and the ball will get rolling... Just a matter of time, meguesses. The market is very pregnant with uneducated investors who are fueling this stockmarket rise through their mutual fund holdings. Delivery is coming. Not yet, though... it might be insiduous because these unfortunate ignoramus investors have no clue yet about the danger in remaining completely invested, while many "smart investors" are playing with big margin accounts...
Coming back to gold......
In the "Figaro Economie" (February 21, Paris) there is an article entitled "Les cours de l'or pourraient rebondir: A l'instar de l'argent, le m‚tal jaune pourrait un jour s‚duire les investisseurs, estime Peter Munk, Pr‚sident de Barrick".
In this article they start by a quote by P. Munk saying "gold is in the same situation as silver"... and they go on about what we all know about gold. They post a table showing the official gold reserves from various countries. French are much more goldbugs than many other nations. Gold hoarding has to get going somewhere to see the POG going up, IMHO. It is probably happening, slowly, but surely.
Good luck all
Gaston
Note: all the above IMHO. |
