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Gold/Mining/Energy : Global Platinum & Gold (GPGI)
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To: Laser who wrote (7868)10/10/1998 9:36:00 PM
From: d:oug  Read Replies (1) of 14226
 
To Anyone, thoughts on a short segment of article is welcome.

This was caused by other hedge funds, perhaps including LTCM,
who had been betting aggressively on the coming Euro.
They were long European markets and short the US market.

The Euro has effectively been wiped off the face of the earth.
LTCM was responsible for the miracle convergence throughout Europe.

This plague of liquidation appears to be spreading around the world.
This means that the stock market decline is NOT over. We will see a
rally first as market attempts to squeeze out all the short positions.
However, lacking fresh buying, the markets will then turn south.

Forget about rushing into the metals.

As reported on Reuters today, the new German government will no
longer oppose IMF gold sales due to the fact that they need their
own cash for home. This will lead to more selling from additional
central banks as well as they themselves become caught up in
the global liquidation crisis.

Everyone is now running out and buying puts on metals for fear
that the next wholesale liquidation will hit this group
sparing no one around the financial world.

There is no place to hide other than cash for the moment.
We are in the final stages of a global liquidity crisis and not
a flight to quality crisis. In this atmosphere, cash rules.
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