Timing is Important for Trading (11/13/07)
We had plenty of time to buy gold and silver stocks this summer.
Hopefully you did.
Even with the correction in the market this past week you should be way up in your portfolio holding your mining stocks. Don't panic add to them as the price dips.
You will see $2000 gold before the turn of the decade. The Feds are pumping money into the system at an alarming rate to keep oour economy afloat. This is good for the economy bad for inflatiion. The dollar also is very depressed so the gold price in relation to the dollar will rise, All currencies except the Swiss Franc are backed by nothing therefore they can ratio the currencies against each other to play the export game, but they can't stop the fundamental law of supply and demand. That is the more supply of money coming into the system the more the price of hard assets will go up in price.
As far as your other holding, did you lighten up on your stocks this past summer as the market was consolidating at the top in the year of 7. We are now iin a correction and could go into a bear market.
The sectors to watch now are the financials and the home builders sector.
They will bottom before the market does in anticipation of the spring season which should be stronger due to the lowering of the interest rates.
Save your money and be prepared to buy HW now and KRE after it bottoms. XHB is another one to watch for a bottoming pattern.
Timing is everything, buy when there is blood in the streets with the financials and the homebuilders.
