Hi Claude:
Yes, gold is the driver but despite the success of your particular jr. portfolio the broader index of Jr's has not performed along with gold, not nearly the way the Sr. golds have. They really should not either, the exploration stocks are not gold stocks, they are discovery stocks and they require discoveries AND speculative money inflows to perform. We have had discoveries but speculative money flows have been limited. Also, a lot of the good performances were followed by retreats as what speculative money is in the sector took profits and then went after the next "flavour of the moment play".
You have a much better portfolio balance, I have been heavily weighted to speculative plays only, a poor decision that has hurt me in this market, had the speculative dollars flowed down in to the jr market, I believe I was well positioned, it did not happen.
So what this sell off is doing to me, and it is the 3rd sell off since Aug 06, is to put money in to bullion because gold has certainly outperformed my Jrs, and we are in a gold bull market where I expect gold to lead the shares in the near future. My other change is to keep more cash available, concentrate my holdings in better quality plays that will attract attention. Not all jr. stocks seem capable of having their story/assets appreciated, eg: TK.
So, BULLION, CASH, and large positions in fewer stocks, like CN, CPQ.
Cheers,
Ogi |
