The Epic American Credit and Bond Bubble Laboratory 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 : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: TH	2/23/2009 9:44:13 PM
	6 Recommendations Read Replies (2) of 110194

On a day when we discover the government is going to probably own 40% of Citi, gold can't take four digits. I suspect that most here get calls from friends looking for help with the market. I'm very selective now that I've wised up, but I still help a handful of people. Today I got a call from a Doctor I help out and he wanted to know why the hell miners are so low with POG near a grand. Here is what I told him. Consider it a starting point for the discussion and tear it up and/or add your own ideas. 1. Hedge fund monkeys went BOOM. There are just fewer players in the game with cash or credit. The monkeys are going out of business and like it or not, the monkeys helped make HUI 500 happen. 2. The general market is down and gold miners are stocks first, and "golden" second. So, market down, margin called, and everything gets sold. 3. Gold miners are not exactly making earnings records. Quarter after quarter we expect the big profits from that low cost-high metal equation. Never seems to happen. Impairments, purchases, and whatever, we just never seem to get the blowout earnings we expect. 4. It could be the start of a new age for equities and that could mean single digits P/E's. Most miners have lofty P/Es to begin with, so maybe last years big run was the high in the miners and now they are going to have to earn it. And maybe even if they get the performance on the earnings up, the street won't be inclined to push the P/E because of course tomorrow everyone thinks the POG will shed 200 points. 5. Maybe the miners have it right and POG is going to sell-off. I dunno, but the POG/Miner ratio is way out of wack relative to last year and the past few years. Something has got to give and just can't see POG selling off in any significant way. GT TH

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next