I think gold stocks are acting the best from here and thats the sector to be in. Real producers without any debt problems to be safe at first. Economically the differential between costs and gold price will reach an extreme in a depression. With layoffs everywhere (eg RIO 13000?) and costs like oil going down and engineering companies going from boom to bust gold miners are going to have their best conditions ever. If they dont do any good now its time to avoid them forever!
Then follow the explorers in the background.
I chart relative to GDP CPI and CRB. Gold relative to commodities is at its highest ever but thats because commodities to CPI are nearly at their lowest ever. To my mind the quantative easing must start directly flowing into consumer staples. Im sure there is going to be a lot of inflation to prop things back up. So buy forward anything you can. Vodka, tubes of toothpaste, what ever you can think of. Remember Rudds speach, Im sure he used the phrase "boost commodity prices", I prefer the term, "inflate the hell out of everything". Rudd and all the world governments are going to have a War on Savings.
Does anybody have a handle on whether the credit crunch is causing farmers to cut back on investing in crops? It must be hard to borrow to plant a crop when the bottom is falling out of everything. Perhaps food shortages could happen.
In the meantime I continue my research into technical analysis and have made some progress there. TA wise the bottom seems to be in and gold stocks are turning nicely. Troy looks good.
