I’m just saying there is an interesting correlation between trend reversals in gold and run ups in the supercycle chart.

http://www.bullnotbull.com/archive/gold1980.html

I don’t think I would call what has occurred thus far rolling over. There has not been enough emotion involved (not enough fear and greed).

Furthermore, gold is not acting like a bearish flight to safety but a realization that paper currencies are being inflated to minimal value. I think that trend will continue. Gold may pause for awhile, maybe even a year or two, but until the US economy is going gangbusters again, will not enter a new bear market.

Of course, the risk is that once the economy does heat up, inflation may rear its ugly head. That is good for gold. The next few years will be interesting for sure. That is why I am hedged.
.-= kidgas´s last blog ..So What is Blog Engage? =-.

If you look at the inflation adjusted price of gold, it was at an all time high in January 1980 at $2358/oz.

http://www.ritholtz.com/blog/2009/10/gold-inflation-adjusted/

If you take a look at the supercycle chart above, you’ll notice that the 80s bull market began to take off when gold prices began to fall.

Similarly, when gold began to reverse its 20 year downtrend in 2001, the equities market began to tank.

I’m not saying there is a correlation, but you have to admit, there appears to be something going on with the trend reversal of gold and it’s effect upon the equities markets.

Makes fairly good sense when you consider equities are a confidence play on the future and gold is a bearish flight to safety.

(FYI: I think I just let my favorite analytical finding of 2009 out of the bag!)
.-= Matt SF´s last blog ..2000 to 2009 Was the Second Worst Performing Decade for the Dow =-.

So you fell for my subliminal advertising eh? haha! Note to self — more beer in articles.

We saw some nice buying today that’s for sure. TARP backed CEO’s from Bank of America and JP Morgan bought back tons of common stock yesterday… Bank of America’s CEO bought 200,000 shares and JP Morgan’s CEO bought 500,000 shares.

When that made the news today, we saw a huge jump. Brings a new meaning to bargain hunting if you ask me.

With today’s market, you can almost take your pick when it comes to high dividends. Problem is, finding the companies that can continue to pay them, or in the case of the financials, will the Federal Government allow them to pay dividends if they took TARP funds.

My gut tells me to play the social tendencies that will occur now that we’re in Depression-like thinking, and buy companies that are 50% cheaper (or more) than they were in Jan 2008.

When speaking of dividends individually, I really like a few diversified sectors:

1) Energy trusts/MLPs b/c we still need gas. Some of these are paying 10% – 30% (BPT, DOM, PBT).

2) Bulk shippers (GNK, DRYS) b/c we still ship grain or iron ore.

3) The “sin stocks” b/c college kids still buy Captain Morgan by the barrel and nicotine is still addictive (DEO, MO).

We’re probably going to churn/trade in a sin wave pattern for a while, so you can pick your entry points after a few down days and get a cheaper price. A 10% dividend yield sounds sexy, but when you lose 25% of your principle, that 10% dividend looks pretty flimsy. So pay attention to the charts and try to find those good entry points.

>>Dividends matter in a sideways market. If your stocks aren’t going anywhere fast, getting paid to wait is a great way to make money. Find those high yielding dividend stocks and live off the dividends.

This is excellent advice too. Do you have any recommendations?