spanked!, page-19

I agree with you adwebster

I started buying some goldies last week but stoped when the prices rose more than I liked.

I think the issue will be how deep the overall market falls.

Goldies seem to fall at least twice the percentage of the overall market.

I am interested in AND, PRU, MDL, CGX and a few others for their longer term value but their recent increases have meant they are not multibaggers in a reasonable timeframe. KCN seemed very pricey as does MML (which I also like). I am basing this view on the assumption that the USD POG stays at its current level. I am wary of buying shares at a high price just because of their supposed long term potential - just look what happened to KZL (which I have held) over the last 3 years, it's been over $6 and below 40 cents.

David Rosenberg (former economist at Merril Lynch) keeps writing that the run up in the US sharemarket has been driven by hedge funds rather than being based on economic fundamentals, and I think they have been doing the same with commodities such as copper and oil while Chinese stockpiling is seen as the sole reason for commodity price rises on the LME. They have driven prices up as far as they can go and now I suspect they will drive prices down for a while to earn their living. I have no idea of a timeframe for when the low might be.

I expect an increase in volitility coupled with falling share prices to continue. So a lot of the goldies should become a fair bit cheaper than today.

All one needs is cash (and a strong stomach).

loki