Hi Judy,
Re that post #13370, Tom feels exactly the way I did during December and January, but I've subsequently changed my mind.
As you know, I sold out of the market in early December, and bought some gold producers, notably Barrick, as a defensive play. When gold broke 370 in late December, I sold those at about a 5% loss. I sold Barrick at 27.
I sat in cash last month as bond yields went up and gold bullion went down.
I started buying battered small tech stocks into weakness a couple weeks ago. When the bonds rallied in earnest last week I went 0% cash. As long as the bonds stay stable or hopefully rally further, I'm going to stay with the list in my profile. Friday's improvement in bonds was astonishing. I hope it lasts.
I think gold stocks are a buy somewhere around here, though. Last weeks action in the AUX looked like a reversal. All the selling seems speculative to me, and the AUX is outperforming bullion. Morgan Stanley thinks gold could get to $300 or so, but I bet it won't make it, and if it does it won't stay there long. Real demand is exceeding supply. I think this central-bank-selling rumor hysteria is exactly that. |
