Claude, re:[I know many who are still holding CKG from $1.60..,
MFL from sub $1.00, and many other stocks from levels lower than
current market prices. Of course, they are also holding some other
stocks whch are lower than current market prices.
Apparently Slider and you do not believe in the secular bull. That is OK,
everybody to his own style.
There are some who believe in this long term bull. For them, gold stocks
are part of their long term assets. So they are long and patient."]
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Hello Claude,
Welcome. Glad to see you here. You've done good work on presenting
a fair, and un-hyped picture on the juniors & explorers.
Not unlike what Bill Miller the legendary fund manager of Legg Mason
has done for his value oriented investors for decades.
I don't know what your return has been to your readers over time, but
I know that Bill Mason beat the S&P 15 years in a row.
But, lately he hasn't done so well, and is being crucified.
Here we have a Hall of Fame fund manager who is now being belittled,
crucified, and getting redemptions because he has now failed to beat
the market.
Fortunately for those in the Gold Bug community, gold bugs seem to
be much more forgiving of their losses than the mainstream investment
community.
Perhaps because for the mainstream investment community, it's about
rate of return vs. the market, and for gold bugs, it's about an "us vs. them"
religious zeal, and one day being vindicated by the ultimate heavenly
financial rapture <vbg>.
Anyway...
I'm just curious as to how any investor, let alone any newsletter writer,
or fund manager can justify a collapse in value, and returns that was
equal to the collapse of the Nasdaq Tech & Internet bubble ?
The fall of the HUI gold bugs stock index from this March's 518 high
to the recent September lows of HUI 255, is the equivalent of the
collapse of the Nasdaq bubble form it's March 2000 highs of 5000,
to 2,500. And the collapse in junior and explorer mining stocks was
far worse than the collapse of the Tech Bubble.
And we know what any gold bug would have to say about any tech
permabull who rode the NAZ train down from 5K to 2,500.
Can you imagine anyone in any sector, trying to justify, or
rationalize riding down a collapse like that?
I'm sure there were plenty of shareholders who owned AOL, or Cisco
below the shareprice levels that were found at NAZ 2500, but how
do you think they really felt?
I find it amazing that someone like Bill Miller is now being ridiculed and
abandoned by his investors, while the smoke & mirror, medicine show
charlatan's that you find on Gold-Eagle, Kitco, and all the Gold-Bug
sites ( I don't put you in this group Claude)... are being defended to the
end by their permabull faithful?
One of the ironic lessons of the markets is that one could have had
poor research, picked bad stocks, but timed the market correctly
and made a fortune in the Nasdaq bubble... as opposed to having
great research, picked great stocks, but timed the market poorly,
and lost a fortune over the last 6 months in the gold market.
The best research without equally good timing matters not.
You need both!
S.O.T.B. |
