Longterm Monthly $USB

In the long-term monthly $USB chart, you can see the development of the bond market over the last 30 years.

You might want to look along this long term chart to your entry point in GBN.V and determine where the peaks and valleys were in the stock and the bond market.

The bond market might be in the same condition that was found in 1986 -87, where both bonds and stocks declined concomitantly.

GBN.V stands to benefit directly should bond prices decline irrespective of whether you have good financial results. (or any news whatsoever)

GBN.V rose during 2008 - 2010 as a result of declines in the bond market, not as a result of the onset of commercial production.

The bond market itself is pricing in a major banking collapse, though no direct news has emerged to confirm this. Surely the collapse of the Eurozone is being priced in, but I would anticipate another failed major bank.

What resulted out of the rally in bonds was a pull-back and Quantitative Easing. Very likely QE will be repeated on the onset of a pull-back in prices, but this would surely set off the bullion price.

supersize: http://www.flickr.com/photos/11747277@N07/7522661984/sizes/l/in/photostream/

http://scharts.co/MGKJzb

-F6