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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (83871)	5/1/2007 4:55:18 PM
From: chowder	Read Replies (1) \| Respond to of 206334

Using mutual funds to gauge market strategies is a very biased and poor example. Mutual funds have charters they must follow. They must be fully invested or invest in only a specific sector or index. They are very limited in reality. Most fund managers may only see 4 or 5 very good opportunities out there but are limited to the amount they can buy. Then they have to buy second and third tier stocks, whether they want to or not, because their charter calls for a certain amount of diversity. I have learned to ignore most studies pertaining to mutual funds due to their limitations on what they can do as opposed to what the would do given the freedom to do so. It's hard to put skill to work if you must buy stocks you don't want to buy, but must because of the funds objectives.

To: Wyätt Gwyön who wrote (83871)	5/1/2007 5:08:30 PM
From: carranza2	Read Replies (1) \| Respond to of 206334

i think the markets are overvalued No just stock markets, but real estate and metals. Don't follow commodities, except for oil, so cannot comment about them. Grantham is exactly right, we are in a global asset bubble. How can our markets keep going up when economic growth is indisputably slowing? I don't think we have begun to feel the pain that the financial shenanigans attendant to the the bubblification of the real estate market will produce. It's really a strange world. The Chinese in the last six months or so have increased their dollar holdings - T-bills, what have you - by incredibly large margins over their previous enormous holdings. Unprecedented. We are a huge debtor after having been a creditor within the last few years. Our savings rate is negative. Our trade and budget deficits are enormous. Everything points to a perfect financial storm. Yet the markets are bubbling away. What will it take? Chinese selling off the dollar, another terror attack, hedge fund collapse? There are lots and lots of loose strings that when pulled could unravel the string ball. This cannot end well. There will be bargains galore when the imbalances are balanced. I saw all of this a year or two ago, and I got scared, really scared. Is the slowing of growth the first sign of a more serious downturn?