Thanks for the link, Bruce.
I like your explanation about FDPMX and foreign currency. I will be 50/50 between FDPMX and FSAGX. Interestingly enough, the drop from peak in february-march 97 to second bottom this January was 129% for FDPMX and 105% for FSAGX... Because the stocks included in FSAGX are mainly North American and rather expensive for what they are and because South African gold stocks are dirt cheap (if the bullion goes above $400) I'd rather push a bit on FDPMX which could rise better right now (before the full valuation of the bullion).... After writing this, I will go 40% FSAGX and 60% FDPMX today. Congratulations with your Fidelity Computers. Did well yesterday. FSENX is too much Saddam dependent.
Because I believe that we are NOT at the bottom for gold as you said Bruce.... BUT that we are actually ON the great gold climb of 1998 , I am liquidating equitities in my IRA and go pure gold. By today, 70% of my retirement, 100% IRA, 100% brokerage accounts for my 2 daughters, and 100% of my own brokerage are in goldstocks. I am not welathy at all,... just pure speculation here. Don't try this at home!. But yes: gold has bottomed in my book too,... XAU does not care about the DOW now, and the price of gold presents these quick spikes up in Autralia, London, Tokyo and USA... That suggests to me, in my humble, partially informed opinion, that shorts are covering here and there, that fresh buying is occurring and that we are sitting on a powder keg (IMHO).
Good luck all
Gaston
(note: goldstocks doubled in general, during 6 months preceeding 1987 October crash... goldstocks crashed also in 1987 (but with a day or 2 delay) and rebounded very fast after the crash to then loose their appeal. Today, in 1998, goldstocks are now climbing from very low levels... mmmhh!.. Volatility everywhere this year. Super!
BTW: run in small stocks is still possible right now. DOW stocks are fairly fully valuated after good earning releases. |
