Thanks to http://www.beearly.com/ for posting a transcript of Don Coxe's weekly web cast which can be found here.
For those wondering if a bottom has been put in for the financials, other than a technical bounce off the January lows, Don Coxe argues the write downs and rescues by the Fed are just beginning.
He is maintaining his long-held stance that commodities will do well in the long run as reserves in the ground of usable material will begin to assert their value over "man-made" goods and services.
Mr. Coxe feels the recent correction in gold and base metals was part of a washing out of newer speculative entrants to the market along with hedge funds answering margin calls. Most telling was his contention that $200 a barrel oil would be self-defeating; crippling the global economy while $1400 Gold would be indicative of economic uncertainty but not hamper global growth.
After the recent plunge in commodities, especially gold, I find solace in the macro perspective that Don Coxe takes and these moments of weakness test a gold bull's will.
Looking to add to my gold position if we bounce off the $860 level on strong volume.
If $860 fails to hold, Ill look a move towards the 200 MA where strong support lies from a technical and valuation perspective (via increased jewelry demand). I wonder how the gold stocks will hold up during any more gold weakness. Don seems to believe the valuations in gold stocks will be coming soon, I hope he's right.