A Stealth Bull

Posted on September 18, 2007 , filed under Stocks | Print This Post

Nearly all of my recent blog posts have been focused on finding undervalued and overly beaten gold and silver equities. Readers know that I have been acquiring positions in a few junior miners. With strong physical gold and silver prices in play, it appears to me that we are in the middle of a stealth bull. The few investors who recognize the situation early enough can take advantage of gold and silver stocks while prices are still depressed. The fundamentals look great. Strong physical prices will add to future earnings for PM miners.

The Fed is expected to announce an interest rate cut at 2:15pm Eastern Time. A rate cut should add downward pressure to the USD Index while simultaneously setting up a short-term bounce for the stock market.

If you are interested in investing in precious metals make sure to check out my previous article The Statistics to Watch for Precious Metals.

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Comment by Flight Mike

2007-09-19 11:22:01

You were spot on on your call. The Fed is being played – the players are crying to them telling them how bad the situation is but first sign of Fed intervention and all of a sudden there is euphoria in the markets. Well if the situation is that bad – 50 basis points are not going to make a difference. An opposing hypothesis is that the main players are doing fine and the situation for them is only slightly unstable at this time period. Thereby, a little help from the Fed does wonders as it is too little to assist the truly endangered companies but enough for the big players – giving them a larger share of the market cap.

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