Needless to say Mark was correct and we are revisiting the topic with him in this week's Volume.
A Quick Timing Update With Mark Leibovit
PD: In our last interview with you in August, the Dow had just touched 9,000 and you told our readers it could easily see 10,300. Sure enough, it has cracked that target quite easily. With the Dow approaching 11,000, what is your new target?
Mark
: 11,300-11,500 and possibly 12,000+. It depends on volume. I know it sounds crazy, but I could even envision a scenario where we get back to 14,000 as cash which has not been in the market finally throws in the towel and buys!
PD: Gold has long been the flight to safety for investors, but over the last several months it has been rallying alongside the market. Is this in direct correlation to a weakening US dollar in your opinion, or is there more to this story?
Mark
: Not sure when the inverse relationship will be broken, but in the meantime a correction in the Dollar could drive Gold into new highs albeit temporarily. Cyclically, that could happen this summer.
PD: We know you are bullish on gold long term, but where is it headed over the short term?
Mark
: I think we can see a high in Gold this summer of uncertain amplitude (hopefully into new highs) followed a year-end correction.
PD: You've made comments in the past that we could see $3,000 an ounce gold. Being one of the best market timers in the business, we have to ask you, when do you think prices like that will be a reality?
Mark
: We're in a 20 year up cycle, as you may have heard from me and others. We exceed the $3,000 target anytime in that period as well. I cannot set a date unfortunately.
PD: Aside from gold and precious metals, what investments are you currently bullish on?
Mark
: My current thinking is that most equity markets will suffer a sharp decline beginning mid-2011 at the latest and you are best in Gold, cash or short via inverse ETFs if you trust the fact that exchanges will remain open. I agree with others that we're going back to basics and owning agricultural land just so that we can eat may be a solid alternative.
PD: In respect to the overall market, do you consider yourself to be a short-term bull or bear?
Mark: Short-term bull into late summer, then a bear into year-end. May be a bull again after year-end.
PD: Of all the major fiat currencies, which one are you most bullish on?
Mark: Canadian Dollar and Australian Dollar
PD: Between the Dow, S&P 500, Nasdaq and the TSX, which index do you believe will provide the greatest upside for the remainder of 2010?
Mark: All will move together in my opinion unti late summer at the latest.
Mark's note to our readers:We've been in a deflationary period for the past couple of years and yet markets recently have recovered due to government intervention. Gold shares can do well in either environment as we saw with Homestake Mining in the 1930s.
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