Strictly: Drilling II Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Arik T.G. who wrote (31385)	7/16/2003 6:44:41 PM
From: isopatch	Read Replies (2) of 36161

<the metal is going to outperform the stocks now... cause valuations for the entire market are too high.> I agree. Looking back at the past 4 or more months, we've gone through a period where - one by one - just about every industry group has had a good Intermediate Term rally. In the past few weeks, sector after sector has reached the upper end of it's trading range, the upper end of it's fundamental valuation range, and the upper end of it's bullish sentiment range. Too many people feel the gold stocks automatically go higher whenever the broad stock indices enter an important correction. But you and I know market history doesn't bear that out. Particularly after the PMs have already had a very good rally - with the rest of the market - off their lows from a few months back. There will always a couple of small caps here and there that will do well without a sector rally. But even for an extraordinarily good stock picker (which I don't claim to be in the PM sector) there's a problem. If the account(s) you're running involve a fairly large amount of capital, you can't get in, or out, of just a few small caps in the size necessary to deploy more than a fraction of cash reserves. In a broad sector rally (where most small, mid and large caps offer good upside) we could put a lot of money to work. But, your work and mine seem to agree a broad rally that will move the HUI or the XAU above the recent highs isn't likely in the weeks ahead. Or course, if we're proven wrong about that a few weeks from now? I'm sure there're a few perma bull/gold buggers out there who will bring such an error to our attention.<ggg> Iso

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next