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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (21201)	7/13/2002 1:13:04 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

DJ, it's all a question of balance. Uncle Al has got life in the old dog yet. His business is to maintain the US$ as the pre-eminent currency, a bit like a horseshoe seller tries to maintain the horseshoe business as tyres take over the road-contact business. Not at all is my adulation of Uncle Al on the wane. He's doing a great job of keeping my US$ stack of cash in good condition. However, I'm merely waiting for the irrationally exuberant to accept their repositioning in the financial markets at which time I'll swing back fully, and maybe include some borrowing, into the stock market. The borrowing part will only come if the markets are truly traumatized, at which time I will feel obliged to do my duty and rescue desperate sellers by borrowing US$ to buy their shares so that they can buy groceries [though not SUV fuel - they will have sold the SUV]. So, right now, I have some NZ$, lots of US$, Mighty Q! shares and zero debt. Yes, I capitulated 15 months ago, and subsequently, bit by bit, and took cover in case things did not go totally according to my plan [which they didn't]. My remaining shares have crashed, but their earning potential hasn't changed, enabling me to buy a lot more with the cash, which I'm contemplating, all in good time. When the US$ seems to have completed its decline, the NZ$ can convert back to US$, unless the US is looking really dodgy and home base remains a better bet. If markets keep on dropping, after I've moved back in 100%, I'll wait to see the whites of their eyes, then give them a dose of borrowed Uncle Al ammunition. But that'll have to wait for P:Es nearer single numbers [or in single numbers]. Something like that anyway. Depending on how things look at the time. Money is debt - a promise by the printer to reward you for your hard-earned labours which got you the money in the first place. Money is debt. People need to understand that. Gold bugs do. That's why they won't hold it when promises are being broken, lies are being told, buildings and hopes are being destroyed, lives are being lost, financial systems are in trouble, debt is collapsing and things are going wrong. At present, I'm okay with Uncle Al's promise and am not prepared to pay the spread between buy and sell for gold while I wait for share markets to tidy up into buy range. Mqurice