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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (40309)	9/15/1999 9:59:00 AM
From: re3	Read Replies (1) \| Respond to of 116790

so, ahhaha, does this mean you would suggest people buy a portfolio of quality gold stocks and check them as infrequently as humanly possible ??? ike

To: ahhaha who wrote (40309)	9/15/1999 3:29:00 PM
From: Ron Struthers	Read Replies (1) \| Respond to of 116790

I agree with a lot of your comments. You state that debt is mostly equity, but this is only comparative because equity has gone so beserk. Corporate debt levels are at extreme highs but the debt to equity ratio looks OK because equity prices are so high, once equity prices come down, its trouble big time for many companies and a lot of the big high flying Net stocks will go under or bought for pennies on the dollar. I believe the FEDs fear is if the market goes higher, the resulting crash would be much worse and they would not be able to contain. Thus their believe it is best to risk a market plunge now while the economy is still strong. As for action, in the past we have always seen major market declines after or before the 3rd rate increase. This market is like no other we had before so it would not surprise me if it takes 4 rate increases. I agree, a major problem with gold, is stocks have become to much of an alternative investment that has done well while gold has done poorly. There is a strong relationship to falling equity markets and rising gold. I also agree the move could be fast and furious. At first many investors will stay back and wait for a pull back, but it won't come. Most will miss the 1st and the most lucrative move in gold for lack of discipline to buy low and be patient. I have been harping for some time now, that the time is now to buy gold and related investments. Few will act until gold is back to $350. Nothing new or unusual, such is the nature of a bear market Ron

To: ahhaha who wrote (40309)	9/15/1999 7:47:00 PM
From: Ken98	Read Replies (1) \| Respond to of 116790

<<The financing in this era is equity more than debt. This has had the undesirable effect of driving stock prices to unsustainable excess because there is such demand for equity funds to grow the tech infrastructure. >> This also has the additional undesirable effect of (over)funding numerous unproductive, and in some cases just plain silly, business enterprises. Witness the many internet and CLEC enterprises that will require fresh injections of capital to merely continue their existence, much less ever returning a profit. Many of these enterprises could have NEVER been funded with debt capital because most debt investors (even the junk variety) would have kicked them out the door with a resounding hell no. Only in the waning days of a manic business cycle would these enterprises be funded at all, much less with straight equity capital. When the virtuous cycle of equity capital flowing like water ceases and these enterprises have to obtain additional capital to continue, they might get a chilly reception from the debt markets. One thing that the equity investors in these enterprises have forgotten is that they (the equity investors) get the back tit at the end of the day after all of the debt holders get paid. This is a lesson that the Iridium investors learned first hand recently. "But, but Forbes magazine said that 'it was impossible to go broke overestimating American's need for self-indulgence......'"