Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Amelia Carhartt who wrote (1401)	7/12/1998 4:21:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 1911

I never have believed that the generator type strategies work. It's hard to prepare for calamity, so I don't try. I hedge the portfolio with gold stock because I believe gold is cheap and if things go bad, the gold may put on a good performance. I think my other holdings have far better expected return even if it takes some years to realize. You can't expect to succeed in investment by aggressively buying hedges. You have to buy what everyone else buys. You have to join the crowd at an appropriate time or you have to buy things the crowd buys at times when they're out of favor with the crowd. In the worst bear markets there are plenty of industrial companies which do excellently. Over the last three years the averages look like everyone has done extremely well. If you look through chart books it looks like a random circus. Many companies have been in bear markets which you would expect to be benefiting from the current economic environment. There is a further complication. Sometimes people think something good is bad and something actually bad is good. There is no way to predict how misinterpreted an event is by the public response to it. You could be storing gasoline to run the generator, but when the 'quake hits, it causes the gasoline to explode and burn down your house. Then all you have is the generator and the perception that the 'quake wouldn't have caused any significant damage to your house.