equities & ukraine will boost gold

Gold was fairly subdued Friday as equity markets continued to feel the hurt. Listening to various networks interviewing traders, fund managers & the like the, fear seems to be growing that this is the start of a continuing declining market. Last time we saw a sharpish correction in equities there was almost a unified call that pullback would create an opportunity to get back in at better levels. The tone imo seems quite different this time around, with anyone seen spruiking the market being shouted down. Reputations are on the line & those talking up the market without foundation & purely from a self interest perspective will be found out. The market is not so willing just to believe after what happened in 2008 & are also very aware of what happens if brokers & funds come under pressure. Better to be in cash than risk your money being caught up in some leveraged play where losses can quite often far out weigh expectations. Again today watch the Nikkei, it has had a shocking week or so & how it trades today will set the tone for the week. I suspect again we will see lower. More S&P companies report Q1 earnings this week & expectations have dropped from 6.5% earnings growth a month ago to 2.5% 10 days ago to now less than 1% earnings growth. Hardly an environment that justifies record levels in equities. Gold is showing signs of a very strong week with early bids pushing it straight up $8. The Ukraine is heating up again, with a deadline being set for Monday morning Ukraine time. Putin I think will play the long game & wont be looking for all out civil war, but only time will tell on this one. Gold should look at the $1350-60 area this week. Have a good week. Cheers Daytr