fiscal cliff is a side show. major cuts to entitlements are needed and that isnt going to happen. so the world sells our bonds? Fed will buy them by printing. sooner or later, the printing will result in enormous inflation, and gold will do very, very well. buy NUGT at $9.50 (3x movement of GDX)
and it still sucks today. i sold at $17.50 years ago, whilst the board went crazy regarding what a fool i was. they told me to think long term, solar was the only answer, i shouldnt trade it out...today, i am STILL laughing at them, and all of you's !!!!!!!!!
why do you want to short a stock that has just had a powerful move up? just cuz what moves up must come down? the oil service industry is beginning a strong 3 year up cycle and RIG has a 30B backlog. dont be stupid.
Tyler Durden's picture
“If Just 1%Of Japanese Pension Assets Shift Into Gold, The Gold Market Would Explode”
Submitted by Tyler Durden on 01/08/2013 - 11:54
Perhaps it is time for the punditry and the chatterbox media to start considering what happens not when the much anticipated rotation out of bonds and into stocks, which has not happened for 4 years now, and won't, at least not until the government bond bubble finally pops which will only happen when the central banks finally lose control, but what happens if even a tiny amount of the global pension capital allocated to bonds and/or equities, is rotated into gold.
“Pension money invested in bullion is ‘peanuts’ at the moment,” Toshima said. “If 1 percent of their total assets shift to the metal, the gold market would explode.”
dont get me wrong, i love trading RIG. but, i always ask myself, what could go wrong that is beyond RIGs control? PEs could decline, albeit slowly. 17x is high. what happens if the industry pulls back to 10x? what if oil declines? on the other hand, what if oil soars? stay alert.
brokerage firms ARE NOT YOUR FRIENDS. they tell you to buy, and sell into it. why do you think that brokerage firms watch a stock fall from $80 to $30 and THEN they issue a sell at $30? they know that you are psychologically beat, and they buy up your losses. this is how they make money.