THC : In my opinion, the whole market is very difficult now. (As if it was ever easy!)
(1) The general equity market is, IMO, about as high as it should/will go. But, having said that, it doesn't mean it will just turn around and go down. The long term graphs look terribly weak, but "something" is definitely "holding the market up". In the circumstances, it looks like sideways is the most likely, until.....
(2) The recent gold rally has now fizzled out. I am sure everyone can see that --- even the die-hard optimists. But, as I have said often, I believe the downside from here is limited (by the long-term "support" level) to about $10. Which means about $280. If that is so, and support is evident, then that should be the time.
The "historical lows" as you say.
PS. It is important for YOU to know what game YOU are playing. Whether you are playing the bumps or are in it for the ride. In my opinion, too many gold/share "investors" are too fickle. While they profess a genuine and abiding interest in gold as an investment, declaiming the CBs for selling and the government for conspiring etc --- if POG goes up $5, they sell --- now proclaiming that no-one went bankrupt making a profit.
I think it was Aesop who said something about slow and sure winning the race. As in the race between the rabbit and the tortoise, for most of us, winning is just about confidence and persistence and not about being smart. And, when the market is uncertain that is the time when confidence and persistence are most important. As in life, itself. |
