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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (95741)	7/17/2002 11:14:25 PM
From: augieboo	Read Replies (1) \| Respond to of 99280

re: Gold Stocks. Here's how I look at it. You are all probably correct. Gold stocks are probably a lousy long term investment. BUT! [1] Today is July 17. Eight weeks from today -- a mere 56 days -- is SEPTEMBER 11. I simply cannot imagine a scenario under which tensions -- economic and otherwise -- do not rise precipitously during the next 56 days. Can you? [2] In addition, Zeev's "Nebacle" will be well under way in no time now. [3] The XAU is headed for a bottoming out which will bring gold stocks back down to prices they haven't seen in quite a while. (Time being rather compressed under these market conditions.) Therefore, my basic thesis is that within that short time frame, i.e., a MAXIMUM of eight weeks, and given a bottoming of the XAU, the risk:reward on gold stocks strongly favors the reward side of the equation -- at least enough so that I am willing to put a percentage of my funds into carefully selected plays within the sector for a few weeks.