Greetings all,
We have all heard predictions of another crash very soon, and we do indeed seem to be heading that way. Some analysts do not exclude the possibility of a bounce of some kind before we go down considerably, but by April, most seem to expect a big down leg…
I am curious about the behaviour of gold stocks; during the fall ’08 crash, the gold stocks resisted a bit before going down. Of course, those of us who held were hoping they would not only resist, but that they would go up, decoupling from the market…
This time around, I am already surprised by the relative strength of the gold stocks. For example, this morning the futures for the DOW and SP are down, but GDX and HUI are holding their own so far…
In the event of another significant drop in the markets, will the gold stocks resist this time, or will they resist a bit and then go down again? I think this is a question on a lot of people’s minds…
I, for one, am hedging my bets this time by holding some cash, but I cannot help but feel that one of these times “it WILL BE different this time…”, and I think the key is an eventual loss of confidence and total panic in the markets.
Good luck to all of you!
Stone