Is now a good time to use gold to diversify a stock portfolio?
*Dow Theory Letters, by Richard Russell, October 25, 2007
“The stock market is poised at a critical juncture, and neither I nor anyone else can predict which way the situation will be resolved But by now every subscriber must be able to identify a bear market signal IF one materializes. I’ve provided in detail what to look for IF a bear market is signaled.
If a bear market is avoided, it will be because the Fed has dropped rates substantially and is also in the process of massively inflating the money supply. It will also be because the US government is on a giant spending spree (think military spending).
BUT — if a primary bear market is signaled, all bets are off. A bear market signal will tell me that the stock market is out of control of the Fed and on its own. A bear signal will tell me that the fun’s over, the punch bowl has sprung a leak, the Fed is helpless, and the gods of the market have taken command.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.