After just posting this essay from David Galland on Gold Shares it is interesting to note that we have Newmont Mines saying this:
Denver-based Newmont Mining Corp. says it earned $370-million (U.S.), or 81 cents per share, up sharply from year-ago profit of $68-million, or 15 cents per share. Earnings from continuing operations totalled 80 cents per share in the latest period.
Just like David Galland was saying, “this time must be different”. Today the stock market is up, in part because banks are posting huge write-offs along with losses that “aren’t quite as bad as first feared”, while gold and gold stocks are getting beat up – again.
So far the Dow seems resistant to 13,000 and the S&P 500 resistant to 1400; how long that will last is anybody’s guess; except for maybe Hank Paulson and the boys.
But sooner or later, investors will decide that they prefer companies with sharply expanding profits instead of bail out candidates with lower than expected losses.
When that happens you will need to be already positioned. I suggest you do so by listening to David Galland and the others at Casey Research.
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