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Gold/Mining/Energy : Gold Price Monitor

GDXJ 109.23

+3.7%

Nov 28 4:00 PM EST

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To: ahhaha who wrote (40309)	9/15/1999 3:29:00 PM
From: Ron Struthers	Read Replies (1) of 116788

I agree with a lot of your comments. You state that debt is mostly equity, but this is only comparative because equity has gone so beserk. Corporate debt levels are at extreme highs but the debt to equity ratio looks OK because equity prices are so high, once equity prices come down, its trouble big time for many companies and a lot of the big high flying Net stocks will go under or bought for pennies on the dollar. I believe the FEDs fear is if the market goes higher, the resulting crash would be much worse and they would not be able to contain. Thus their believe it is best to risk a market plunge now while the economy is still strong. As for action, in the past we have always seen major market declines after or before the 3rd rate increase. This market is like no other we had before so it would not surprise me if it takes 4 rate increases. I agree, a major problem with gold, is stocks have become to much of an alternative investment that has done well while gold has done poorly. There is a strong relationship to falling equity markets and rising gold. I also agree the move could be fast and furious. At first many investors will stay back and wait for a pull back, but it won't come. Most will miss the 1st and the most lucrative move in gold for lack of discipline to buy low and be patient. I have been harping for some time now, that the time is now to buy gold and related investments. Few will act until gold is back to $350. Nothing new or unusual, such is the nature of a bear market Ron

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