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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (4083)	12/1/2003 11:13:03 AM
From: austrieconomist	Read Replies (1) \| Respond to of 108747

Hussman just turned to the contrary. I don't have a good perspective on Dr. Hussman's analytical work with respect to gold and gold stocks, but his published record with regard to U.S. stocks is dead-on, so I take his "warning" on gold short term very seriously. December 1 comment --"In gold, our simple but effective 4-indicator complex (see Going for the Gold) has shifted to a fully unfavorable stance. Our more complex and proprietary models are no different. While I do believe that precious metals have long-term merit, I am concerned that short-term traders may be playing with fire, particularly given the high volatility of gold shares and a steeply overbought condition. We currently have no position in precious metals shares. That's not investment advice or a recommendation that other investors should sell, because we're very comfortable completely missing any further advance in gold stocks that occurs in what we view as a hostile Climate. Still, the potential risks are worth noting, and investors with substantial holdings in gold here should be certain that they have a long-term horizon and a similarly patient risk tolerance."