The further Gold declines in price, the more gold mines shut down, until you have a major imbalance between supply and demand. Then, the price starts going up again. I think that, in this market atmosphere, people and managers are unloading everything, the good along with the bad. In the longer term, this is kind of like a fire sale!! 50% off on many stocks, some 90% off!! If you choose value, you'll see your profits return after this bear market - the average of which lasts around 18 months - this one has about 4 - 6 months to go to reach 18 months. I figure it'll turn around after this year's year-end tax-selling, which should finish early Dec sometime.
Takes a lot of guts, though - and 90% of the investors out there are newbies and have never seen or been through a bear market - so it's hard to tell how they'll behave in the initial stages of a turn-around.
Harry K. |
