Tag: gold

Is it time to buy gold ?

Why this question and why now?

My views on investing in gold have been very clear, I am not a being fan of investing in gold. You can read my previous post here or watch a video I recently did here

But being not a fan is one thing and understanding contradictory view points from experts who sit on the other side of fence is another and as investors when facts change we should change our mind.

Most returns in investing are cyclical as the below picture depicts

image source – Motilal Oswal

Even within an asset class the winners keep changing

Image source – Vanguard Australia

Knowing above information, we know that timing can really improve one’s return. Many market participants would say time in market is more important than timing market. However there are small sub set of investors who have done well using rules to move in and out of asset classes

See below screen grab which shows results of timing and riding up cycles in stocks and gold

image source 

I think you should spend 15 mins to watch this full video from Mike Maloney to appreciate the concept

In what works on wall street Jim … Read the rest

Why it is difficult being contrarian ?

In December 2014, I wrote a book review of  investment classic from Howard Marks – The most important thing, Here is a reprint of passage from that post

[My re-emphasis in red]

What makes people and markets in general to commit mistakes ?

  • Greed – An extremely power full force that overcomes common sense
  • Fear – Prevents investors from taking constructive action when they should
  • Herd behaviour – Thinking and behaving like crowd
  • Dismissal of historical pattern – reason for so many bubbles and burst

It is a major cause reference order cheap viagra of erectile dysfunction in men. Buy Sildenafil Citrate buy levitra online http://downtownsault.org/events-2/4th-of-july-parade/ 50 mg at genericpillshop.com that is available in the greater part of the ED solutions. The levitra viagra cialis medicine involves Sildenafil Citrate which is one of the best ingredients for treating male erectile dysfunction problem. There are several different types of generic viagra sample http://downtownsault.org/events-2/paradeoflights/ therapy available, each one suited to different needs and different issues.
All of the above come naturally to any investor and this is the reason they are very difficult to let go  only few individuals develop habits to negate above

Now how does one combat above –

… Read the rest