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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (2098)	9/14/2001 9:15:15 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

<buy/hold/sell concepts for dealing with the Greenspan put> That's the 64K question isn't it? And the answer is tough and very dependent on how strong you think the Greenspan put still is. In layman's terms economic "moral hazard" refers to a situation where market participants are convinced that someone (in this case, the Fed) will "pump liquidity", or "lower interest rates", or directly intervene (Plunge Protection Team) in the markets every time there is a crisis, and I mean EVERY TIME there is a crisis (the list is long). Moral hazard as practiced by Easy Al Greenspan (the worst central banker since John Law bankrupted 1720's France), leads to a certain overconfidence from participants that they are insulated from large losses (hence the name Put, as in put option). And once you feel insulated, there is tendency to pile unabashedly into trades (short gold, long treasuries, long US$, long the S&P, etc.) where Easy "appears" to be on their side. In the case of gold when you see sellers every morning at 10:02 EST and rallies are suspiciously and quickly stemmed, this notion is merely reinforced (even among gold bulls). tocquevillefunds.com Recent events (NASDAQ crash) have proven that although Easy may "appear" to be on their side, that doesn't especially guarantee against large losses at all. Indeed, the Easy Al Put may be just like the Wizard Of Oz. In fact IMO that exactly what Easy Al is with all his bullets spent. Therefore to profit from the "Greenspan Put", take positions opposite of those who have been ensnared by it. Long gold in undervalued, nonhedged and highly leveraged juniors looks as good a bet as any. <my 18 year old son> The kid would likely make a good warrior, and that's what concerns me as an American father right now. I've got a bad feeling that youth like him will get chewed up and spit out in a war, which to me seems quite likely. The whole "yellow ribbon" concept doesn't do much for me.