Investors today seem to love jumping on whatever asset’s price is soaring. Tesla is going vertical? Buy Tesla. Gold is going vertical? Buy gold stocks. Already overvalued? No problem—it’s hot!
This sort of momentum-chasing is no “buy low, sell high” strategy. It can work if a greater fool comes along, but if one buys just as momentum falters, the losses are major.
All obvious, I know, but needed to set the stage.
Now, gold bugs enter the scene, stage right.We buy gold and silver whenever we can… but gold and silver stocks? Do we buy at the bottom in late 2015? After the failed rally in 2016? Or during the Crash of 2008?A few of us did—precious few. More were spooked out of the market. Many took huge losses in the process.I’ve seen evidence of this in the flow of reader correspondence over the years. Perhaps more telling is that subscriptions tend […]
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