Re: Money and the end of Juniors
in response to
by
posted on
Sep 28, 2008 05:15PM
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Diabullic,
Just a word of caution.
Just because the bailout plan comes together, does NOT mean more banks will not hit the ground hard AND in such event so will the stock holders.
The bail out plan does NOT bail out the stock holders. I the banks will not lend each other money, why should you?
Remember, the juniors have ALREADY had their hit. Tyhee is down by 70% from 52 week time high not because of changed fundamentals, but because of unwinding leverage and fraud by greedy parties shorting the stock with illegal methods.
Downside risk is much, much less the upside potential. So the risk reweard is attractive.
Also look at the technical chart, the long time uptrens (down side resistance) is actually intact, believe it or not AND the fundamentals for gold and miners has not changed, it is stronger with the inflation heating even more up with this bail out plan.
That does not mean it is 100% safe at these levels, but I think when this sector moves we only need 4 to 10 trading days to get back on track.
Government, even Canadian government, will now move for action against fraud. Listen to JP this week end.
This is a very special buying opportunity.
We got to be in it to win it!
I am in it for the long term.
Euroman