- Precious metal stocks are the most volatile asset class in the world because there is a community that thinks gold is functionally useless and a relic (governments and bankers) and a community that thinks only gold is money and money is gold (the gold bugs and 3 billion Asian peasants). Both are right.
- The key to trading gold stocks is the same as successful risk/reward management: knowing the 60/40 end of a winning proposition, money management and knowing thyself.
- Regular Technical Analysis will not work in the gold stocks market. In order to survive the market, you must learn which strength to sell and which weakness to buy.
- The precious metals complex goes up a set of stairs and comes down an elevator.
- One of the beauties of the gold market is you do not have to wait long to find out if you are trading the market right or wrong.
and much more
George Soros Warns Of Biggest Market Crash To Come, As "We Are Facing A Yet Larger Bubble" Than During Credit CrisisSubmitted by Tyler Durden on 04/15/2010 13:05 -0400
George Soros, speaking at a meeting organized by The Economist, warns all those who are throwing their money into the equity pit, that "the financial world is on the wrong track and that we may be hurtling towards an even bigger boom and bust than in the credit crisis." Advice from Soros or from CNBC. You decide. Reuters reports that Soros said "the same strategy of borrowing and spending that had got us out of the Asian crisis could shunt us towards another crisis unless tough lessons are learned." We hope all those who are buying stocks have very tight stop loss triggers.
"A decline in the value of the dollar is necessary in order compensate for the fact that the US economy will remain rather weak, will be a drag on the global economy. China will emerge as the motor replacing the US consumer and, of course, it’s a smaller motor because the Chinese economy is much smaller. So the world economy will have less of a motor, so it will move forward slower than it has in the last 25 years. But China will be the engine driving it forward and the US will be actually a drag that’s being pulled along through a gradual decline in the value of the dollar." - George Soros