Tuesday, October 16, 2007
Backfire
Michael Panzner (Financial Armageddon, 11 October) comments on (and graphs) the increasingly synchronized movements of some speculative markets, including gold and tech shares. The range between these assets is tightening and may indicate that a turning point is due.
This would gel with other information: Marc Faber has said that he sees bubbles everywhere, including gold. True, it's also been reported recently that he's been buying into gold, but remember that he is something of an investment gunslinger and will have his own view about when to get out, too.
And Frank Veneroso thinks that the gold price rise is at least partly owing to heavy speculative backing from funds that may have to get out in a hurry, if a general market drop forces them to realize assets to settle accounts.
My feeling? We dudes shouldn't try to outdraw seasoned hands.
Subscribe to:
Post Comments (Atom)
2 comments:
The trouble with gold is that all eyes are on it and it features heavily in the Fed's plans.
You'd have to know what you were doing [read "have inside info"}.
My guess/hunch:
1. Things will unravel at some point, there will be a scramble for cash, prices all around will drop.
2. Governments will print more money and do other silly things (renege on debt, erect trade barriers etc) and inflation will take off.
If so, the strategy would be to hang off and invest between 1 and 2.
Post a Comment