Thoughts on Markets

Sunday, January 30, 2011

Egyptian Crisis - Gold - Silver - May be selling some more Fortuna - This week may reveal much for investments

Stratfor says that the rebellion in Egypt should be no surprise:
The Egypt Crisis in a Global Context: A Special Report
It is not at all clear what will happen in the Egyptian revolution. It is not a surprise that this is happening. Hosni Mubarak has been president for more than a quarter of a century, ever since the assassination of Anwar Sadat. He is old and has been ill. No one expected him to live much longer, and his apparent plan, which was that he would be replaced by his son, Gamal, was not going to happen even though it was a possibility a year ago. What should we expect? This is an interesting read >> HERE.

It appears as though we may see the precious metals continue their upward move from Friday. However, it is likely that the correction is yet incomplete. I was only able to sell a very few shares of Fortuna (FVITF) last week at about $4.00 per share. I was interested in selling a few more shares, but the price did not reach the level for execution on my limit orders. I may try to sell a few more shares this week, but will be watching the market very closely on Monday. 

Remember that what I am doing may not be good for your portfolios. Consider very carefully what you do and make up your own minds.

It appears that there is a large demand for both metals as the price bounces back some after every sell off we have seen through the months of this very long bull market. I believe we are yet to see the third phase of the this market, and it promises to be a real whopper when it arrives. I most certainly want to be well stocked with mining stocks when it begins. 

Regardless of what we are being told by our government statistics; particularly the CPI and unemployment reports, we must remember that there is a vested interest in government for both to be rosy. First, the CPI must be kept low, so that adjustments to pay and Social Security can be skipped or remain small. Also, they want for everyone to be certain that price inflation is thought to be low. They fail to point out that inflation is raging in food and energy, both of which are excluded from their CPI report. Thus, it is always low and comfortable to government officials. Second, the government is hiding the high rate of unemployment to make citizens believe that the economy is beginning to boom again. 

Do not fall for the lies and deceit which is presented to us. We must become wise as serpents and harmless as doves as Scripture tells us. This is a time for each of us to become even more familiar with the Law-Word of God and to more diligently follow it. We should not depend upon men, but depend upon the unchangeable King Jesus who consistently cares for His people. Praise Him daily, and rest in His love.

Best to each, Doug


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