Paul's Trades

[Paul Fakler]

Hi Lisa. Sorry for the late reply, I was busy this afternoon.

Several reasons to be trading in gold stocks:

1) I like to trade in several sectors & gold stocks is currently one of them. When I trade mainly in one sector I sometimes find myself taking positions that I probably should not (doubling up inappropriately, etc...). When I am in more sectors I tend to focus on where I am trading successfully.

2) Gold has not had a blowoff top in a long time. If this should happen gold stocks will explode. In any case POG is on an uptrend & possibly could exceed $450 sometime in the next year. Buying gold stocks at support & holding therefore "seems" less risky than with tech stocks.

3) Gold stocks are volatile, so I can allocate a smaller percentage of my assets to them & still achieve good returns. (i.e. even if a large percentage of my trading account is cash because I am waiting to enter a different sector because I haven't been trading well there ;(.

4) Let's just say that I don't expect the economy to do really well until 2005. If we are lucky the 2nd half of 2004 will be good. Until the economy shows sustained growth POG will not suffer for more than a few months.

Note: I am currently flat on gold stocks. I sold out last week... a bit prematurely. I expect gold stocks to remain strong for several more weeks, but took profits anyway.