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Message: Pieces of a letter to a fellow investor

Pieces of a letter to a fellow investor

posted on Apr 24, 2010 08:42PM

Rachael, I'm not anxious at all, because I already know they (The upcoming drill results) are going to be excellent. Keep in mind, that might not move the stock at all. It might, but it might not. Psychology moves stock prices, not drill results, not earnings. What moves stocks are people's reactions to all these things...


...(In regards to the stock advance following the Carmen drill results a few months ago) You are right. It was a reaction to good news. The extent of reactions cannot always be foreseen in advance, however. Regarding your Uncle's finance guy(who laughed at him when he mentioned gold and the mining industry), in my view, he doesn't know what he's talking about. People who laugh at other people's ideas are usually evidencing a sign of weakness and insecurity. If you examine people carefully you will see this is almost always true.

In response to your earlier line of questioning, I do think China will eventually crash, but deflation will be the result as the US Dollar collapses when the Chinese no longer continue to buy our bonds. Gold will thrive in this environment. I think if you were to tell this guy that he might not know what you were talking about. Don't laugh at him. Cry for him. Bull

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