Thursday, October 09, 2008

Death of the Equity or Dow plus 1000 points? Gold, Silver, Zinc and Copper.

I will not be surprised now with DOW plus 1000 rally, after everybody has announced death of the equities. Do not fight FED now, close your puts position. I have sold all my Google GOOG puts and will return back after earnings and possible rally. Fear is at its High - time is to Buy. Amount of money pumped into the system is unprecedented. If the earth not stopping to spin now, bargains in Juniors will bring new fortunes for those brave to buy at these levels. Now the real decoupling begins between overinflated artificial financial assets and commodities with scarce supply like Gold, Silver, Zinc and Copper which are my preference. Why should you touch any poisonous financial stick when you do not understand what is inside of that "value" proposition? Go for simple things regulated by economics of supply and Demand and not by FED or its Friends from the Wall Street. They will save the world - it is fine we need it, but what kind of world will it be? What will be valued? where is the next story of building Wealth? Real things, real people, know your story and invest accordingly. With Gold above 850 USD Gold mining stocks are back to valuations at levels below USD500. In Silver divergence between value and stock prices are even higher. Once all these waterfall of liquidity will find its way into the system sector will explode to the upside. My rebound squad: SSRI, SLW, AUY, SST.v, TNR.v, CZX.v

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