Fleckenstein On The Plunge In Gold And Mining Stocks
Fleckenstein On The Plunge In Gold And Mining Stocks for King World News
Bill Fleckenstein had this to say about the plunge in gold and mining stocks.
Dirt On Their Hands
May 2 (King World News) – Bill Fleckenstein had this to say regarding the pounding the mining stocks have endured:
“It seems to me that the miners now trade to some degree in inverse proportion to the stock market, as if they were de facto puts. I suspect that might be because folks who are rabidly bullish on stocks really hate gold. Perhaps gold stocks get shorted, even for day trades, when the stock market is strong.
I could be completely wrong about that, but it seems like the metals complex has behaved recently as if it were simply a put on stocks. And because so few people seem to care, it is pretty easy to drive them into the dirt.”
King World News note: When it comes to the metals complex, the downdraft will not be a state of permanence.