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Strategies & Market Trends : Ride the Tiger with CD

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To: Rocket Red who wrote (107570)3/8/2008 11:44:09 AM
From: SwampDogg  Read Replies (5) of 313959
 
The great thing about this debate is we will know in the fullness of time. My thesis is held on the notion that all bull markets end in manias and busts and what we have had in the PM market is to this point just a move from the fringe to the beginning of being mainstream.
The fact that the PM market is so small market cap wise and the larger sectors are tanking will throw even more gas on this market over the coming weeks. In the past couple of months the sector allocation of the Cdn market has changed dramatically and this will continue. Every new dollar that is invested by institutions into the market is now split differently than it was in the past due to the lower weighting of the financials and the higher weigthing of energy and materials. By the time this bull is over IMO the weighting of materials in the TSX will be higher than financials and this alone will result in at least a 200% rally in the larger gold stocks.
As money moves in the PM funds money will trickle down to the junior stocks and moves of 5x-10x will be common in the coming months. We will then move on to retail speculation which will result in much higher gains. This is all predicatble and normal for those that understand how markets have worked for all of history. Free your mind and your a$$ will follow...
This will all be over in the next couple of years so you will learn something really quickly here. I don't mean to be rude but if one thinks that this is not probable than one just does not understand markets. This gold market will NOT correct sharply from this level.
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