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Super Pit ... Super Smart ???, page-112

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googs61

1,650 Posts.

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20/11/19

12:00

Post #: 41527858
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Originally posted by nordesmic: ↑

The performance of gold during the GFC should not be used as a template for future performance in my opinion. The GFC was a very unique set of circumstances that caused a rush to sell anything that was liquid and wasn’t nailed down. There is a recency bias among gold investors in thinking that a stock market downturn would again be bad for gold and gold stocks. Most downturns, particularly those attached with recessions, have been positive for gold. Even the GFC was only negative for a period of about 6 months before the sharp move higher.

The general hysteria across other asset classes (bonds, stocks) is in not similar to similar to gold and gold stocks. It would take such a small fraction of money to come out of bonds/stocks to massively ignite the gold market. Many local miners have performed well but this is still in large part due to strong profitability (driven mainly by A$ depreciation). They are not bubbley when compared to tech stocks or any number of other sectors across the world.

I fear you are suffering from gold stock shellshock somewhat eshmun and capitulating just before the game really gets interesting. I know you’re using charts more and more. The long term gold chart is screaming that this is the time to own it. Central Bankers’ have reached the end of this road of unconventional policy but that doesn’t mean they can’t get more unconventional. Academic economists are already laying the groundwork for something like MMT to be the next ‘saviour’ in a downturn. Likely they will over-reach and some point and cause the market to recognise they are not wizards, but just ordinary people pulling levers behind a curtain.

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Whenever i read youre posts i imagine its xirty harry talking......lol

SAR Price at posting: $3.07 Sentiment: Buy Disclosure: Held
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