Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Keith Monahan who wrote (1578)	3/15/2001 12:23:45 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

The market sell-off in '69 ended the previous expansion. At that time there was an inflation similar to what we have now. The problem phase of inflation didn't start until '71. Gold stocks didn't meaningfully start up until Jan '75 with the stock market recovery from the bottom in September '74. Bonds were poor performers during all these years. Until '75 shorting bonds was better than buying gold stocks. Short bonds in general delivers poor performance. Long gold stock is similar. There are exceptional periods. Some gold stocks are attractive now because they have good earnings and PEGs in a difficult period for bullion. Bonds should be avoided because there isn't much capital appreciation potential, in contrast to gold stocks where the price leverage is great. Accumulating certain gold stocks should be successful regardless of the economic environment. The FED's actions guarantee there's a price floor under bullion and a price ceiling on bonds.