General Stock Ideas

[gfp927z]

Bigworld, I'm with you on gold, but if things go the way you describe then we're not only looking at a huge stock market crash, but also a full blown financial/derivatives crisis and Ice-9 freeze up. In that case you'll want physical bullion, not mining stocks, because the stock exchanges will be closed and the gold miners won't be trading.

I still don't understand your preference for mining stocks vrs bullion. The higher beta is the only theoretical advantage I can see for the miners, but that works both ways (up and down), and you also have the freeze up risk. You also have the 2008 experience (down 72%).

I like gold's prospects, but one thing I've learned is to hedge against my own faulty judgement, hence the asset allocation model. I guess our approaches differ in that I see breaking even as a victory, and you are positioning for a big profit.