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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (55208)	9/20/2009 8:17:15 PM
From: prosperous	1 Recommendation Respond to of 217549

That is a fair expectation that in case of deflationary scenario gold would maintain its value on the expectation of helicopter drop of money and it might. However, the real outcome depends on who the holders are at the time. What we saw in the last Oct scare was that the hedgies and fundies came quickly undone as the stock markets plunged (including individuals) and had to sell their gold holdings to meet margin calls or buy bread or whatever. If the same people are holding (a likely scenario) into the next drop we will likely see gold lose value for a while. I agree on lowering stock holdings; even if they do well with current interventions and speculations, individuals will have difficulty playing this game well (not mention the speculating professionals as well). If individuals have stock/options from their employers, they have a neat way to reducing their equity exposure just to that component while reducing risk from their portfoilos and gain from any stock market advances.