In the November issue of Strategic Investing, Davidson claims to have foreseen the present worldwide market scenario (downturn) about a year ago. It seems that things will be getting a lot worse before they get better. Even Ralph Acampora of Prudential Securities stated this evening on CNBC that 1998 would be a bear market year. He said this to backtrack from his earlier rosy prediction for 1998!
Some market-watchers believe that the Japanese have struck a deal with Rubin (Secretary of the U.S. Treasury) to have their holdings of U.S. bonds sold off in a piecemeal fashion in order not to cause short-term or long-term disruptions in the U.S. market. To be sure, more 'shokoos' are in the offing. IMHO, the U.S.$ will be looking more and more vulnerable in a year or two from now, and people will begin to see the folly of hanging on to 'paper' that is backed by nothing other than you know what.
Though the Japanese people have been given a significant taxbreak, I don't think they will be spending all of their tax savings. I believe they will be saving at least half of that, probably in gold! I understand that the people of S.E. Asian will be buying gold in the days ahead. And, of course, that bodes well for gold, don't you think? Or is my sentiment just merely a goldbug's perennial yearning for the resurgence of gold?
In the next little while, however, I guess I will be investing in AURA(Nasdaq) and OPC(VSE). If you have any insights regarding these two stocks, please be so good as to post them for all to see. T.I.A.
Regards,
Richnorth |
