MARKET PRESSURE = BUYING OPPORTUNITIES
As predicted on the AGORACOM Blog, it appears we are now moving into capitulation phase and a great opportunity to buy good small-caps that have been thrown out with the bathwater.
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I think we're starting to see how apparent fear and greed is in the market. The U.S is in a state of despair. Americans have been robbing Peter to pay Paul. Well....Paul and Peter are both BROKE!
The economic numbers coming out of the states are rather bleak. Citibank kinda freaked me out yesterday. It was their worst year of financial performance in almost 200 years.
There has been alot of chatter on bloomberg tv with regards to a rather large rate cut by the fed. It seems like there is a high probability of 50 and perhaps 75bp cut.
Either way there is a clear path for gold to infiltrate and even surpass the 1000 mark in the very near future. In my opinion, the majors are reasonably priced. The gold corps of the world are priced accordingly. It's the juniors that are being plagued by heavy market discounts. It seems like there is a high discount to future cash flow. I guess it's because this cash flow is somewhat uncertain but, pick your small caps wisely and you should do fine.
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