Re: News Flash !!! Zibo, follow up to Tues article....
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TODAY'S DISCOVERY, TOMORROW'S FUTURE
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Message: Level II Update: 15:34
Jeff Clark followed up with another article on Gold today. None of us need to be told its scary out there. I have pretty well painted myself into a corner with KXL and will be here this time next year. I still think we are in the right sector and the right stock. Going to dive into that latest NR about the Uranium and see what I can learn. Would appreciate any insight from anyone regarding their interpretation about it. Sounds like it was pretty potent to max out the meter. Maybe they took a $2 pistol to a $5 dollar gunfight?
GLTA
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The Biggest Risk for Conservative Traders
This is remarkable. In an environment where governments all over the world are printing money and financial catastrophes occur daily, gold should be rallying. The fact that gold can't catch a bid tells me the forces of liquidation are stronger than the forces of economy. In other words, investors, governments, institutions, and hedge funds are raising cash and will sell anything and everything to get it. This creates a very scary environment in the short term. It's an environment in which price doesn't matter. And logic doesn't matter. All that matters is the need to deleverage and raise cash. The biggest risk, though, is not to gold or to gold stocks. The biggest risk is to the general stock market. I don't use leverage in my own investments, and I limit my speculative activities to just 10% of my portfolio. Clearly, the rest of the world doesn't operate this way. So when funds need to unwind 30-to-1 leveraged bets, conservative traders are held hostage. I'm tempted to buy any number of stocks trading at historically low valuations. But now, I'll wait until they get even lower. And they will. The stock market will probably rally today. In fact, it wouldn't surprise me at all to see a 400- or 500-point rally in the Dow Jones Industrial Average. But I'm scared about what happens on Friday and what happens next week. The market is not responding as it should to oversold conditions. It's not responding to positive earnings announcements. And it's not responding to bullish comments from analysts. It is responding to liquidation requests. And I fear we haven't seen the last of them.
There are terrific bargains in the stock market right now. If you have the ability to buy and then close your eyes for the next few months, you'll be happy with the results. The problem is with the next few weeks. So sit tight on your cash for now. You'll soon have an opportunity to put it to work. And it may be with the markets at significantly lower levels. Best regards and good trading, Jeff Clark |
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