Commodities
& Gold
Learn how to speculate and profit before
the investment crowd arrives.
Gold is a very hot market right now,
and is likely to stay hot. Jim Rogers believes there are
still better commodity markets to explore.
I would listen to Jim Rogers.
Sadly the link to his interview by the
Hindustani Times has expired - but you will find an excellent
book by Rogers in our book review section. Jim is very
generous with his time - there will be other articles.
Commodities are finishing the first leg
of a long term bull run. The waiting for the initial move
is over. If you read this as an asset class run is ending
- look for the next asset class. You will be able to recognize
it by how everybody avoids it.
Gold will continue it's bull market,
but there will be some hard and fast declines that may
scare you out of your positions. If you get a bit smaller
in gold - taking early profits - you can seek some non-correlated
speculations elsewhere.
I will be wrong at times, Rogers will
be wrong less often. If all your eggs have prospered in
one basket, it may be time to move some eggs to the refrigerator.
Wealth is made through concentration,
wealth is preserved through diversification.
Rogers has made his wealth, that may
put him at another stage of speculation than you. With
wealth you can be a year or two early with speculations,
and wait for markets to catch you.
If you are creating wealth - the sweet
spot of the trend for commodities seems to be upon us.
You didn't capture the first ten percent
in gold and commodities - that's fine. You would have
had to sit patiently and wait for that. Don't try to capture
the last ten percent in the stock market. When stocks
drop it could be very quick.
Asset classes move in long cycles. Financial
assets, paper claims like stocks and bonds, are likely
and the end of their trail. Real physical assets, commodities,
gold, and such are probably at the start of their climb.
Folks will tell you the masses are always
wrong. That is not true. The masses can be right for a
long time in the middle of a move. It is within that trend
where you will make the bulk of your profits, by
sitting.
Keep your losses small - let your profits
run.
It is at the end of a move where the
crowd goes mad. When you, and almost everyone you know
is excited or depressed about something - it will be time
to move opposite the herd.
* Take a look at Jim Rogers articles.
* Read Jim Rogers' books.
* Prepare yourself for change.
We have started a new cycle, there will
be ups and downs, the commodities trend for now
seems to be mostly up.
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