..............More 2009 Barron's Roundtable
More 2009 Barron's Roundtable, see http://www.cattlenetwork.com/Content.asp?ContentID=285534. Part of the article is below:
Faber: We're used to leverage. It may take two years to work out. On the long side, the Nicholas-Applegate Convertible & Income Fund trades around 5. The junk-bond market and convertible securities could rally substantially, as corporate bonds have done. The Federal Reserve's move to buy up assets will lead others, including Bill Gross at Pimco, to front-run the government and buy the same assets. High-yield bonds and mortgage-backed paper could rally.
I agree with Felix's bullish view of gold, except that gold prices might not go up until later in the year. The price was up 5% in U.S. dollars and much more in other currencies in 2008, and people may sell it first to buy something lower-priced. Felix pointed out [in last week's Roundtable installment] that gold-exploration companies have been decimated by the financial crisis. I see the potential for a huge rebound. A lot of exploration companies are selling for 2 or 3 a share, which is like buying an option with a very, very long expiration date. If the global economy improves, they can probably produce. If not, prices will go ballistic because there will be no new supply. Gabriel Resources, in Canada, trades for 1.60 Canadian dollars. Newmont Mining [NEM] owns a sizable stake.
.......http://www.JoeFRocks.com/
NEM XAU HUI
Faber: We're used to leverage. It may take two years to work out. On the long side, the Nicholas-Applegate Convertible & Income Fund trades around 5. The junk-bond market and convertible securities could rally substantially, as corporate bonds have done. The Federal Reserve's move to buy up assets will lead others, including Bill Gross at Pimco, to front-run the government and buy the same assets. High-yield bonds and mortgage-backed paper could rally.
I agree with Felix's bullish view of gold, except that gold prices might not go up until later in the year. The price was up 5% in U.S. dollars and much more in other currencies in 2008, and people may sell it first to buy something lower-priced. Felix pointed out [in last week's Roundtable installment] that gold-exploration companies have been decimated by the financial crisis. I see the potential for a huge rebound. A lot of exploration companies are selling for 2 or 3 a share, which is like buying an option with a very, very long expiration date. If the global economy improves, they can probably produce. If not, prices will go ballistic because there will be no new supply. Gabriel Resources, in Canada, trades for 1.60 Canadian dollars. Newmont Mining [NEM] owns a sizable stake.
.......http://www.JoeFRocks.com/
NEM XAU HUI
Labels: DUG, GDX, Gold, Gold Stocks, HUI, NEM, RUT, Silver, Silver Stocks, SPX, XOI, XOM
posted by Joe Ferrazzano at
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