It Feels Like October 20, 1987
On October 20, 1987, I was just 31 years old and in the brokerage business a whopping three years. I was working for a NYSE member form at the time and had just been promoted to Head of Investment Strategy a few months earlier. Back in August, I had written to our clients and in my newsletter that I envisioned a stock market crash. By October 19th, one had occurred.
I remember walking into our office in Eatontown NJ very early the morning of the 20th. The mood was grim and fear of a further meltdown was widespread. For whatever reason(s), I decided to state that the worse was over and we could see a new, all-time high within a couple of years. I still recall the universal disbelief that such a feat could take place given what had just occurred.
Nothing has come close to that dismal feeling of hopelessness for a market in all the market swoons since then until yesterday. Total despair regarding mining and exploration stocks is widespread. This group had already been in a horrific bear market before gold and silver crater late last week and yesterday.
While I’ve 26 years more experience and at least 40lbs more body weight, I feel the same towards mining and exploration stocks as I did the market in general back on October 20, 1987. I just can’t conceive them going extinct as the prices and mood in that sector seems to be doing today. It’s total speculation (and remember Wall Street created the word speculation so it didn’t have to say gambling, but speculation and gambling are the same and one must be financially and mentally prepared to lose part or all of their capital), but the time has come to scream out to the overwhelming bearish conditions in this sector this.
You can literally throw a dart at most producers and many of the juniors (including Grandich Publication clients). Unfortunately for me, I’m out of darts (cash). For those that aren’t, I don’t think there can prove to be a better speculating opportunity in the last 30 years than right now! The fact that 99.9% will either disagree or unable to bring themselves to act, is the nail in the coffin. If I’m wrong, trust me, it will be my coffin being nailed.
peter grandich |
