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To: Baba 2 who wrote (10619)4/25/1998 1:32:00 PM
From: Bobby Yellin  Respond to of 116764
 
thanks for explanation..(I might have started it with a prior post
when I posted that a friend told me you can even get prescription
drugs off the internet now)
I also think if there is a crash it will be unlike 87 which presented
an unparalleled buying opportunity for equities..
US companies now have become lean and mean and possibly nasty and
yes very competitive and are overvalued by most standards..
global competition has set in so now everyone is fighting for the piece of the pie..
natural resource section has been in a bear market for how many years..
Russia doesn't have any more to dump on market and from what I have
read..doesn't have much infrastucture to become a big producer for a
while
A lot of mines have probably been closed..a lot of miners laid off..
it takes a lot more time to produce metals etc than to print paper
off press
In order for China to prevent civil unrest it will have to go ahead
with its plan for increasing infrastructive on a massive scale
The Japanese also have announced public works programs..
More countries have created more consumers who buy products ie cars,
homes that will use natural resources..
etc
also so many safety nets have been removed now..when people start feeling threatened they might demand more spending in these areas again..politicians want to get reelected...



To: Baba 2 who wrote (10619)4/25/1998 2:04:00 PM
From: Crimson Ghost  Respond to of 116764
 
Will gold stocks crash with the others?

This depends on how high gold and gold stocks go before the the party ends. If XAU goes up another 30% or so before the game ends as I anticipate, it probably will go down with the market -- but to a much lesser extent than most other sectors. Perhaps down 15% if the Dow Jones plunges 30%.

But if the party ends with XAU at current levels, it might well move up some as the overall market goes down.

Just my opinion of course.