with the banks hoarding money and the fed cutting the rate to zero, when the economy rebounds this sets up for hugh inflationary pressures
fed pumping money in the monetary system
- Thread starter hlmencken
- Start date
that is true, with inflation rebounding, it either does or we are going to be in big trouble.
gold is probably in a range however with interest rates low and going lower, it does not cost as much to hold gold....(since Tbill and govt bonds pay almost nothing).
at his rate may even make money off of YRI, it can happen.
thanks
selkirk
gold is probably in a range however with interest rates low and going lower, it does not cost as much to hold gold....(since Tbill and govt bonds pay almost nothing).
at his rate may even make money off of YRI, it can happen.
thanks
selkirk
hlmencken though I agree, believe there is no rush, and that resource stocks will probably just go lower.
currently most producers in oil/gas, or mineral are cutting back production, and explortation budgets, also expensive mines are no longer being developed.
though this takes time to take effect, months and months, in the mean time demand has fallen off a cliff, and most investors will begin to throw in the towel.
demand will have to come back, stronger than it is currently.
oil opec cut that is great if you like oil, however the last cuts did not take hold. the largest hawks ( countries for sharp cuts) VZ, and Iran have not cut anything...or very little. most opec countries cheat on production.
base metals when the companies earnings go to zero, and they will with a quarter or two at present prices, and they look expensive then they will be good buys, make sure the companies you buy did not kill their balance sheet with debt...or you are just buying a lottery ticket.
gold/silver gold will trade in a range, lets say 750 /975, do not see it breaking out 1000 in the next month.
own some just as insurance, 5-10%, by the way no longer a profit on Yamana, so when my dec option expires will write another one, 1-3 months out.
agree resources will be a good play, however best to wait, or better yet make a list of good companies and watch....or buy very slooooowly.
thanks
selkirk
currently most producers in oil/gas, or mineral are cutting back production, and explortation budgets, also expensive mines are no longer being developed.
though this takes time to take effect, months and months, in the mean time demand has fallen off a cliff, and most investors will begin to throw in the towel.
demand will have to come back, stronger than it is currently.
oil opec cut that is great if you like oil, however the last cuts did not take hold. the largest hawks ( countries for sharp cuts) VZ, and Iran have not cut anything...or very little. most opec countries cheat on production.
base metals when the companies earnings go to zero, and they will with a quarter or two at present prices, and they look expensive then they will be good buys, make sure the companies you buy did not kill their balance sheet with debt...or you are just buying a lottery ticket.
gold/silver gold will trade in a range, lets say 750 /975, do not see it breaking out 1000 in the next month.
own some just as insurance, 5-10%, by the way no longer a profit on Yamana, so when my dec option expires will write another one, 1-3 months out.
agree resources will be a good play, however best to wait, or better yet make a list of good companies and watch....or buy very slooooowly.
thanks
selkirk
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hlmencken not a problem, though they all probably trade as a large group in this market.
my biggest play in this group in AGU (Agrium), like ag stocks however they are sharply off their lows especially in the last two weeks. incredible how volatile the markets are....
thanks
selkirk
my biggest play in this group in AGU (Agrium), like ag stocks however they are sharply off their lows especially in the last two weeks. incredible how volatile the markets are....
thanks
selkirk
