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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (2164)	9/26/2001 7:40:45 AM
From: katarak	Respond to of 36161

you're kind of sensitive so i'll try not to accidentally push your buttons. agreed on your recap of the gold story in the light of hindsight. traders had their heads handed to them like you say after the entry point in 2000. if now the long awaited bull rally begins in ernest, position holders from the entry point in two thousand will actually reap an additional cap gains benefit depending upon their income tax bracket... i.e. buy and hold folks from the entry point in 2000 are now entering long term cap gains which will offer them a maximum 20% increase in their profit positions.... certainly a case where being early may have been a very good idea indeed. secondly, if now is the second major entry point, adding to old positions would not be a bad idea at all for a number of reasons.. if the bull market will last a time frame comparable to the bull run of the 70's for example, using FIFO, the orginal positions can be sold at long term cap gains rates covering new positions taken now and in time for freeing capital toward the purchase of bargains which may arrive in the course of the ongoing broader sell off. and of course there are a number of producers whose increased dividend payments will pay for a number of individual positions at current prices.. given the substantial rise in the metal expected by you and quite a few others at the moment. as to who bought at the right time, good point. given the variables which support a gold position fundamentally and the above, anytime since the entry point in 2000 was a good time to buy... assuming of course everyone is right and the gold bull finds some stronger legs going into the fall and winter. when do we rotate some money into oil/oil related and gas??<g> K