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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: JoanP who wrote (64527)2/3/2001 7:46:13 PM
From: Archie Meeties  Read Replies (1) of 436258
 
Chicken,

Not much sense. Dollar inflows are needed to make the market rise, and dollar outflows are needed to make gold in USD go. That's a gross oversimplification, and may have nothing to do with prices over the next few weeks or months. For example, gold could be bid up on anticipation that the massive amount of liquidity will eventually make the buck turn, but before it does waves of dollars can hit both the equity market and the gold markets.

Taking this in another direction, remember that the XAU is a group of equities, so it's redundant to say that both equities and the XAU will rise. What you're really interested in is if a return of interest in gold (physical gold) begins. Until it does, no amount of interest in the XAU will amount to sh*t, and all rallies will be sold. These are two opposed ways about thinking of money. One is investing in the XAU for leveraged gains on a rising commodity, the other because they wish to preserve their capital with an instrument that can weather any financial storm (including one that washes the XAU out to sea for a while).

But to answer your question, "Does it make sense to be bullish on gold and equities at the same time like Richard Rhodes is? " It seldom makes sense to follow the lead of a stranger. -g- Better to make your own way and suffer the consequences!
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