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

To: Crimson Ghost who wrote (11522)	5/12/1998 10:37:00 AM
From: Jim McMannis	Respond to of 116835

George, RE: "Impact of a stock drop on POG depends on how far POG has risen by that time and the reasons for the correction. The higher POG goes, the more vulnerable it will be. A stock market correction because of fears that AG might hike short rates probably would be bearish for POG as well. But a correction because of year 2000 concerns, middle eastern war, sharp drop in the dollar, or surging bond yields probably would be bullish. My take is that stocks will not go down for the count until POG is a lot higher. I see little risk to POG from a stock correction -- whatever the trigger -- at these levels." --------------------------------------------------------------------- A very astute post. Especially the last paragraph. It's long been my contention that the bull market in stocks would continue as long as the XAU stayed well behaved. As a matter of fact it's a large part of my fundamental model. That one factor has indeed made "El Toro" rather famous for longevity. I also have found it a fallacy to invest in gold based on some percieved catastrophe on the horizon. That "faith" however, continues to draw some investors to gold. I never fails but nearly every time, investing in gold as a hedge against a catastrophe, fails. Jim