Fred Hickey: Buy Gold, Short the Horsemen - Barron's

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Barron's 2008 Roundtable participant, Fred Hickey, editor of The High-Tech Strategist newsletter weighs in with his picks for 2008: streetTRACKS Gold Trust (GLD) - "despite an eight-year bull market that saw gold jump 30% last year, the most exciting phase is yet to come. Dow-to-gold ratio has historically been about 10 to 1; now it's 15 to 1."

Barron's 2008 Roundtable participant Fred Hickey, editor of The High-Tech Strategist newsletter, weighs in with his picks for 2008. In a nutshell: Buy gold - sell horsemen:

- Horsemen [big-cap tech stocks] did spectacularly in 2007, leading to a 'spike' reminiscent of late '99. Specifically, Hickey says Research in Motion's (RIMM) sales are not sustainable, especially in the face of an upcoming glut of touch-screen cellphones. Salesmen are pushing the phone to retail buyers, but the company doesn't know the market. [Hickey suggests shorting using put options.]...

- streetTRACKS Gold Trust (GLD) - despite an eight-year bull market that saw gold jump 30% last year, the most exciting phase is yet to come. Dow-to-gold ratio has historically been about 10 to 1; now it's 15 to 1. Demand from ETFs is helping drive up prices, yet mine production remains weak.

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