As we all know the market goes up then it goes down then it goes up. Today is a down and tomorrow may be also, but I do not sense enough negatives in the wind to actually propel THE BEAR MARKET that all us gold bugs have been anxiously awaiting since perhaps 1995. As Jim Dines said in a presentation I attended at the very end of October 1997, at a Cambridge House Metals Investment Conference in Anaheim, California: pointing to a chart of the S&P 500 "What trend do you observe ladies and gentlemen? Correct, the trend is up!" The implication at that time, was that we shouldn't be too expectant about our precious metals holdings at that time, and again he was correct.
We stare at our stock screens every day, and in our hearts we know the broader markets are too high, but all the suckers are not in yet, and until The Fed actually raises rates I expect the market to rise.
It's an UP thing! So until I see blow offs on huge volume I'll stay in. I sold my Viagra early at 97 and bought silver, gold and pgms. They are holding pretty well today.
The Fed can temper irrational exuberance by simply stating a bias. Like a stock buy-back program, it does not have to actually take any action if the intended effect is accomplished with jawboning alone.
Bill Peavey |
