gold analysts are as bearish here as they have been in many months
in his latest letter Russell says if you want gold stocks, "you may just have to close your eyes and buy."
i think not. "close your eyes and buy"--this does not strike me as a particularly bearish sentiment coming from the gold-associated analyst with by far the largest paying readership, who has probably gotten more people into gold stocks than the next ten analysts combined.
also consider the fervid support for gold stocks on chatting sites like SI, where people get offended if one is not pro-gold or pro-their little pet stocks. reminds me of certain tech stocks. i agree with Lewis that at this point, the miners and the market seem to be basically the same trade.
that opinion will be put to the test if/when we get a big selloff. simple question: if the SPX sells off 30% as i believe it should (on the way to selling off at least 50%), what happens to the miners? i do not think they are the anti-market trade they seemed to be in 2001. i believe the miners will go down along with the SPX, absent a move in gold above $500.
do you remember that band "Pop Will Eat Itself"? no, i never heard them either, but i like their name. very Zen! and maybe now we have Money Eating Itself--where there is so much sloshing around that you end up with all these heretofore noncorrelated sectors--gold, financials, tech, REITs, cyclicals--all marching in lockstep, like soldiers across a bridge.
no gold, no tech, no financials, no REITs, no cyclicals. no form, no feelings, no perceptions, no formations, no consciousness. just a lot of money chasing anything with action. Money Will Eat Itself.
just an opinion at this point. |
