Last year Clive almost got me totally out of the market. He was threatening fire and brimstone. My portfolio had been tanking for some time and I was at wits end. So I sold down 40% of my portfolio. Then about 1 week later, despite feeling scared and having read Clive's dire predictions I reminded myself why I was into goldies and went 100% invested again. Maybe I was just lucky and QE2 saved me last time.
I am far less confident this year. Two of my gurus are still positive or not overly negative about the sharemarket. On the other hand Adam Hewison and the Slipstream trader are looking for more downside. And if Europe cacks itself I know where our goldies will head. If all we get is a recession then the sharemarket may retrace to 3400-3600, I suppose, and perhaps the shareprices of gold producers would not fall too much. On the other hand if GFC2 comes along then look out below.
The direction of the bank shares in the US and Europe is a pretty good indicator all is not well. They were the canary in the coal mine in 2007 and 2008.
loki (worried goldbug)
TRY Price at posting:
$4.45 Sentiment: Hold Disclosure: Held
