By: John Fisher – Additional Content from Franklin Sanders
My friend Franklin summarized the issue of investor mistakes in a bull market quite well: “Over the years I have watched investors make mistakes. Two of the biggest mistakes arise from not understanding what a bull market (primary trend) does: it makes prices rise generally, and often unexpectedly, and always against opposition that tells you the bull market is about to end.”
Listen to the news channels and mass media right now – they are constantly telling us we are in a gold bubble that is about to burst. There are a few exceptions (Click here for WSJ article), but the point is that a bull market is always faced with opposition stating that “it is over”. We are not even close.
So investors make two mistakes:
1. They delay buying, waiting for the bottom of a correction. When the correction comes, their greed seduces them to wait just a little longer and sure enough, the market runs away from them before they can ever make up their minds to buy.
2. The other mistake is worse, to try to sell the highs and buy back the lows. Nobody can successfully do that more than a couple of times a decade, and worse, that strategy negates the benefit of a bull market. Worst of all, sooner or later you will sell a peak that turns out NOT to be a peak, you lose your position, and the market runs away from you.
Then what is the wisest strategy for a bull market? Get right, and stay right; get long, and stay long; get long, and get longer. Buy and hold for the ultimate peak, not for the chiseling in-betweens. And NEVER confuse a bull market with investing genius!
Click here to check the current gold and silver spot prices….
All Things Considered – John’s Commentary
Action to take: Our final point is to sell at the peak. Don’t fall in love with your gold and silver in this bull market, because everything has its time and its season.
We are still in the “Wall of Worry” phase of this market – there is plenty of growth left and it is time to buy in and continue to buy. We will actively advise our clients when it is time to sell as we near the final phase of this market. At that point there will be other down trodden assets and alternatives to invest in for future growth. For more on the 3 phases of a metals bull market:
The 3 Phases of the Metals Bull Market Article
What to buy: Assess your holdings and target 60% silver and 40% gold in the lowest premium form available. Understand that premium exists, and you need to seek out the lowest premium forms of bullion that have strong saleability for the future. This is one of our areas of expertise, and we have saved many clients from overpaying for the wrong forms of gold and silver.
Quote of the day: “Were we to be directed from Washington when to sow and when to reap, we should soon want bread.” – Thomas Jefferson
