POG and the DJI

Once upon a time, gold was a hedge against the stock market.  Now it seems to move together!  Wall Street plunged on Friday... and so did POG.

However, gold cannot be printed.  And there is a lot of cash sitting around earning pittance.  One bad reporting season does not mean the end of the equity markets.  Yet, most fund managers function like lemmings.  At least, lemmings have a brain in their heads while these finance "experts" keep theirs in the rectum.

Come Monday, the same will happen to the ASX.  Everything will fall.   If you have good news to tell, don't report it until the market stabilizes.  That is in theory illegal but there are excuses the boards can find.

While I am running out of spare cash, I will be looking for bargains.  But be warned, the analysts are all predicting a bad reporting season in the US.  That is still big brother.  So if you are going to buy, choose only good value stocks.  And if you cannot handle risk... stick to the 4 big banks.