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

To: Richnorth who wrote (86999)	6/17/2002 5:39:15 AM
From: Zardoz	Read Replies (4) \| Respond to of 116927

How do I know we are so far yet from a market bottom? Because stocks are still so expensive. Rather than a PE ratio of 5 or 10 times, the S&P 500 is still selling at about 44 times earnings. PE's very often rise in a bearish market. It's the speculation that a recovery is in site that turns investors into investing. And when the equities grow their earnings again, that they become reflective of a growing economy. I think a hint at the reason the masses of people have remained complacent about the market can be gleaned from the following comments of our friend Bill Murphy, who writing for ... ... commented about Fridays action in the gold, dollar and stock markets as follows: "The stock market was crashing, the dollar was tagged and gold was flying. All of a sudden (at exactly the same time) gold sank, the dollar rebounded and the stock market staged a fierce rally. You would have to be brain dead not to see the market intervention, engineered by the Working Group on Financial Markets. Bill Murphy doesn't get it. I quoted the "Gold must die, so the Dow can survive" many years ago. {I forget who stated it first, I copied it of SI from someone else} But that is what started my interest in GOLD back then. BUT the point here is that Bill doesn't know who bought. I doubt very much anyone on SI will tell you, but it wasn't the US Fed, it wasn't the average investor, and it weren't the mutual fund operators. It was, and always has been the Japanese and Euro CB acting together. There has been, and will be a concerted effort to keep the currencies within a range "AT ALL COSTS". And that costs include throwing massive amounts of liquidity {even at great losses} into economies. The back scratching is heavy, and VERY noticeable. A person can easily predict these events. The average investor is a sheep:" Eats' grass in the fields. Some get sheared by the owners. And still others die from not knowing how to eat. And some get picked off by wolfs. It's the sheep that feeds the animals. And it's the animals that control the markets" {Hutchism} Be careful about making assumptions wrt gold this week, and going forward. The conclusion that the Gold index is leading gold is a fallacy of valuation. Often an index {regardless of the index} can get greatly over bought relative to the earnings {ohh how we talk about Technology earnings and not gold earnings}, but it's the earnings going forward that are always important. In a low rate environment, the Financials almost ALWAYS lead the markets higher. The Dragons' of the markets control the leading to the markets. They get the best rates, lowest costs, and force feed the sheep to the funds. They make the markets, they cut the grass. And they permit the owner to shear the sheep. When the animals want the US Dollar to rise, what does that do to Gold? Don't forget about one important thing. The Markets are NEVER fair