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Gold/Mining/Energy : Gold & Gold Stock Analysis
GLD 414.48+0.7%Jan 9 4:00 PM EST

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From: bull_dozer3/21/2009 1:37:18 PM
   of 29622
 
Money & Bread!

Contrary to popular opinion, I am of the view that most commodities and stock markets have seen the lows for the entire bear-market and we may be in the early stages of a new cyclical bull-market which could last for a few years. Now, I am aware that my bullish stance may lead to ridicule from some of my readers, but I would like to point out that new bull-markets are always born during abject pessimism and scepticism. Even if some asset prices break to fresh lows in the near-term, I suspect such a move will prove to be a 'head fake' and prices will soon rebound. So if you have a 4 - 5 year investment horizon, now may be a good time to convert some of your temporarily powerful cash into hard assets (precious metals, energy and industrial metals), related producing-companies and sound businesses in the fast-growing Asian economies.

At the current levels, the energy complex looks extremely attractive and should prove to be a fantastic long-term investment. After years of extensive research, I am convinced that the world's oil production is peaking and we are likely to see much higher energy prices in the future. So, investors may want to add to their positions in upstream oil/gas companies and the energy service stocks. Finally, it looks as though the precious metals complex is becoming over-heated and long-term investors may want to wait for the usual summer correction before adding to their positions in physical gold and silver.


321gold.com
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