SI is a tiny corner of the world, hardly representative, there were lots of contrarians here pointing out how vulnerable were the dotcom bubble, the ramp in some US real estate areas, the subprime lending, the shakiness of financial stocks, etc ... bears rule here, always have, probably always will, this is not normal Main Street country
And even here, you don't see anybody saying gold and its stocks go to the moon tomorrow ... well alright, ralph-e, but that's just lack of meds and the exception that proves the rule, lol ... i do think it could be a while before any significant recovery, it might not be so long, but it could, quite easily ... at the same time, gold stocks are outstandingly cheap, in the last short while they've found something that looks to me fairly bottomish, odds are they don't get a lot cheaper imho, and it's that time of year too, second week of december, pretty much the peak of tax-loss season
Much more to it than gold stocks - how about copper, likely to be a leading indicator again, very important to a number of gold stocks in which it plays a large part, like New Gold and Terrane whose upsides are dependent on it ... not for doomster gold-only folk these, very much bets on economic recovery, same with zinc, oil, gas, vanadium etc, i like having exposure to these here
The J6P class is not homogenous imho, some were never that leveraged, some have deleveraged already as much as they want/need to, some have gone bankrupt, more will go bankrupt, some are coming of adult age and just getting up to speed on the whole leveraging process, buying cars and houses ... and for sure, some still deleveraging, lots of them, an outsize slice - for now
Patterns like this result in either bankrupty or a bounce, and no judge wants a smelly old barrel of oil in his court - stockcharts.com
... of course that bounce could come from 30, or 20, or wherever, sure - but bounce it will |
