Bear market rally will end, stocks to resume heading lower, a lot lower, that means gold stocks also going lower, dragged by stock market correction.
Gary June 27, 2023
That is often the case. For example, in Q4 2008 gold stocks led the crash and in 2020 they also crashed with stocks. In 2008 the miners were burdened with deplorable fundamentals and deserved every bit of that crash. You can’t account for inflation oriented bugs puking when the macro deflates and you can’t account for the margin man. But this phase at least, I don’t think there is much froth in the sector and that will ease the downside risks when the bear market rally in stocks terminates.
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Bear market rally will end, stocks to resume heading lower, a lot lower, that means gold stocks also going lower, dragged by stock market correction.
That is often the case. For example, in Q4 2008 gold stocks led the crash and in 2020 they also crashed with stocks. In 2008 the miners were burdened with deplorable fundamentals and deserved every bit of that crash. You can’t account for inflation oriented bugs puking when the macro deflates and you can’t account for the margin man. But this phase at least, I don’t think there is much froth in the sector and that will ease the downside risks when the bear market rally in stocks terminates.