The short answer is I agree.
While ISA is not a financial adviser, a picture is continually being painted. On one hand, the macro picture is ugly enough for statements like “Global markets and economies are mired in the early stages of the biggest disaster ever.” On the flip side, the world economy is seeing tens of millions of third world peasants annually being lifted out of poverty while the U.S. economy is a bright spot.
Where to invest, however, is a different story. As a believer in the industrialization of China story, ISA continually notes the materials and commodity complex. Well understood, however, should be the idea this sector may be muddling for quite some time. Perhaps investors and speculators will be fortunate enough to see remarkable values in the sector next year. No one knows. A currency trader looking to pyramid a big move could consider attempting to short the resource based Australian dollar.
Oil and energy certainly receive a great deal of attention at Independent Stock Analysis.
I continue to stalk entering a thermal coal position through CLD. As I grow comfortable with the idea natural gas may be entering a cyclical bull market, I actually moved a gasser toward the top of my watch list this morning. Weal C.
But the reader’s question and statement involved opportunity. Well documented should be the possibility of the precious metals complex enjoying short, intermediate and long term bull markets. Gold, silver, and the mining company’s have consolidated recent gains are knocking on an upside breakout…again. Two newsletters I respect and follow suggested this week (here and here) the precious metals complex looks to correct before marching higher. I don’t kiss raging bulls and I did not post their commentary. One already flipped his stance (nothing wrong with doing so).
Position trumps. I’m just a fundamental stock guy who is knee deep in precious metals. Were I tempted sell at the moment, I would turn off the computer and stop by the cigar shop on my way to the golf course. But we all have the right and obligation to change our mind.