I’m expecting some badness next year in the stock market, maybe as late as Fall 2010, as we head back into recession.
In 2008, as the market tanked, gold came down hard with the market for a while, but recovered early. With the pain of the market dropping, margin calls and such, supposedly people were selling gold to cover losses in other areas.
I think the same will happen in late 2010. Gold will plod along until then, drop with the next negative stock market event, creating a buying opportunity, then continue upward.
I wouldn’t say it is in a bubble, but I’m not sure it is going to continue steadily upward for much longer.
