I think the market will correct (downward), but I have no idea when nor how much.
In the Oct. ’87 crash, the S&P 500 went down 20% in one day. One of my gold mining mutual funds — VGPMX — went down 34% over late Oct.-early Nov. ’87 (my other gold mining mutual fund — UNWPX — was not yet in existence).
Given my read of the dollar, debt overhang, etc., I feel very comfortable that over the long haul my gold mining mutual funds will continue to do very well.
Ideally, I’d switch my funds to 100% money market, avert the correction, then move back 100% into VGPMX and UNWPX, at a lower price (i.e., with more shares). But, there’s the risk that some odd event — bankruptcy of a big mortgage lender — could trigger a rush (out of the stock and bond market and) into gold. If such, happened, I’d have to buy in at a higher price (i.e., with fewer shares).
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