where is my 1000, page-36

Investors need to do those things that will keep them sane (and in profits).

Losing sleep will make one dysfunctional and reduce the quality of ones investment decisions.

I can not read the charts, but for those that do ignoring signs that have proven correct in the past is a sin, and goes against their strategy. If the signals are strong enough then they must be obeyed.

However, I am not sure I would sell all my gold holding in all my gold companies at present for 6-8 weeks. Some of them may have good news stories announced while I am out of the market making it more expensive to re-enter or may ran on expecations of strong fundamentals (SLR is possibly one such case).

The other thing is that 2008 was a lot different with the fear factor being so high (as measured by the VIX). I can not see that happening in 2009 unless there are signs of another financial meltdown which would impact on all equities.

What I can see happening is a gradual fall in share prices in the US as the recession really bites more (just think of all those state and local govts there that are bankrupt - eg California) and another round of problems from home loans and commercial debt. Also if interest rates rebound due to inflation then this has a negative effect on shares.

It would concern me if the US Fed stopped printing money and the govt ceased their bailouts. I might then exit everyting for a time as a safety measure because I am not totally convinced in the short term that gold would go up (or stay up) if we had a deflationary spiral.

At present the US/EU/Japan/China actions are inflationary in the longer term, resulting in a current rise of inflation expectations by the long term bond market. It is also having a very positive impact on equities around the world.

The ABC show last night on the Ascent of Money was very timely in that it focused on growth of the govt bond markets and its relationship with high inflation. As an investor in gold shares, rapid money printing/bond creation are the two things I expect to see on a massive worldwide scale to keep me very interested in gold shares.

loki