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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (11108)	5/2/1998 11:50:00 AM
From: Terry Rose	Respond to of 116898

Richard, How the inevitable stock market correction plays out is anybody's guess. A major meltdown will probably hurt precious metal stocks because they are paper assets. Therefore, I have some leap puts of selected bank stocks just in case to offset any losses. My prediction is a significant market drop will cause the Fed to flood the monetary system with liquidity to prevent a total meltdown and this inflationary action will benefit the price of gold. Since the majority of my gold stock portfolio is highly leveraged to the POG, this probably will bail me out. Since the dollar has evidently topped out as evidenced by it's decline vs. the mark, I plan to stay put in gold assets to protect me from a devaluation and hopefully benefit from it. Another cheap way to protect your position in stocks is to buy out of the money S&P leap puts near the 200 day moving average. In prior market corrections ie. 1987 and 1929 the 200 day moving average was touched or penetrated. You might want to mention this strategy to your neighbors. If they plan to stay in the stock market this may save their behind. However, with the level of complacency with these novice investors they might not think any insurance is necessary. At least you tried to warn them. Terry,