deflationary spiral

Does this feel like 2008 all over again? Deflation, doom, despondency, share prices getting slashed, MYG holding up OK so far.

Well, amidst the gloom, I can't help commenting on some stuff.

1) The message around the globe was - further QE would only be necessary if there was another deflationary crisis - well here it is. The worse it gets, the greater the liklihood of the printing presses being put to work. Happened in late 2008, has to happen again if the world as we know it is to survive. And we know what printing presses do to the value of gold.

2) Hmm, if that's the case, I wonder what happened to the price of Gold stocks last time? Take GDX and the low of $19 which was reached in October 2008. A year later, price was $47 and 6 months after that, $65.

3) Wonder where the price is now? Answer $20. Are we near the bottom? Maybe/maybe not. Will there be a bottom? Of course, there always is. Let's nibble at the prices as they fall and make a fortune when they pick up. When will that be? Who cares.

4) Why who cares? You only need the 2 C's in this game, cash and courage. No cash? Well, you shouldn't be here in the first place. No courage? Too late for that now.

5) I only own MYG, I'm not diversified. Well, you've got the courage anyway.

6) Will gold stocks pick up if gold picks up - yes, always have, just a timing thing really. See Courage above

7) Will gold pick up again? Well, would you invest any of your money on the promise of any government anywhere at the present?

8) So how do I weather this storm? Stop reading rubbishy articles like this one and go live your life. Paint the house, walk the dog, get married, drink more, take up smoking, get divorced, whatever - just wait until things improve - which they will.

All my humble and somewhat bizarre opinion of course