Hi CB,
Here's an interesting post I read today on a gold board. It adds to the 'sell in May' idea. The only thing I would differ on is that I might prefer gold more to cash. If you look at any of the world's currencies today you would see gold rising against all of them lately.
www.gold-eagle.com/gold_digest_04/russell033104.html
The end of a Russell note:
"INVESTMENT POSITION - Why is the bear in the box? The bear's in the box because we're in a primary bear market - and furthermore in the early phase of the bear market. Bullishness is still rampant, amateur investors are combing the pages of Barron's or Investor's Business Daily for stocks to buy. The newspapers are filled with advertisements about "How you can get in on this or that fortune making method of beating the stock market." I've seen this all before, seen it many times. It's part of the distribution process by which the big money unloads its stocks to the small money. So what do we do about it - how do we operate?
The stock market is in the process of building a top to this counter-trend rally. The top has got to "look good." Why? Because the better the top looks, the longer the big money has to move out of stocks and the longer the retail public has to absorb what the big money sells. It's ironic, it's sad, it's mean - it's the way of the world on Wall Street.
My suggestion - move into cash and hold gold. What kind of cash? Dollars, euros, yen. Maybe just dollars if you are an American. Gold? Two-thirds in the metal and one third in the stocks. What gold stocks? Newmont, GSS, PDG, WHT. That in a few sentences is my best advice. Please do it.
Richard Russell
Editor-in-chief - DOW THEORY LETTERS
www.dowtheoryletters.com/dtlol.nsf |
