Most of us probably have the feeling we always buy at tops, especially over the last 10 years. Remember how back in the good old days you could buy practically any stock and it would go up? That was back in the days when “buy and hold” was en vogue. That is what buying in a bull market does. A rising tide lifts all boats as they say.
Lets look at a guy who has bought at the tops over the last 10 years. He invested $10,000 on 4 different occasions, but each time he bought at the very peak of the market. You would think he would not have much money left.
Alright. Now we are in the present day. How much money do you suppose this guy has? By my calculations, his investments are now worth $94,530. Yes, despite buying at the tops, he has more than doubled his initial investment.
Of course, what he invested in was gold. This post is not so much about buying gold as it is about riding the bull.
We are just out of another one of these bull tops and have a good opportunity to get back into gold at a much better price than where we sold. I was hoping for an even better price at the end of a D-Wave, but we may never again get to buy a D-Wave bottom. What we have is an opportunity to buy at an intermediate term bottom, which comes along about every 15 to 25 weeks.
This is the importance of knowing the kind of market you are in. If you are buying most any stock but Apple, you are trying to make money in a bear market which is very hard to do. I know our portfolio has some duds, but so do the best portfolio managers in the world. Legends were made back in the 80′s and 90′s in the investment world, but only the investment banks have figured out how to do it in the last 10 years, mostly with the help of your money. The only bull market I know of today is in the commodities market, and the commodities that will shine the brightest are the precious metals.
