fat prophets says hang in there, page-14

pugnacious

These days I hardly read FP any longer. But I thought some one might get some consolation from this.

I have been very bearish for a long time (since early 2007) because I have been reading the Mike Shedlock website for about 2 years (as well as other similar minded economists). He takes a deflationist viewpoint. While I put my superannuation funds into cash in September, I felt there was some chance I could be wrong so I stayed too long at this party (although I did sell down by 2/3rds from the level I had been with borrowed funds). I have some spare cash left, but now I am too scared to buy anything until the gyrations slow down. I have put in a few really low ball bids for some resource companies, and will lower them more if I think the market is going down to 2000 or so.

Last year FP recommeded gold and on their advice I bought VRE and DIO. I sold out of VRE at a profit before watching it tank due to some inner fear (same with DIO). I have lost on several other goldies (LVR, BDG, PRE) and now hold MCO, NGF and some residual PRE. MCO rose today but NGF fell. I hope gold does rocket because that would be really lucky for me and all holders of gold shares and physical gold.

I will survive this crash, barring a worldwide financial collapse that destroys my super. At present I have lost 80% of my gains since 2005.

I really have no simple solution for people like me that stayed in too long. It is a long way back. I do not need the funds urgently so I can wait a long time, and I have left myself some leeway with spare cash. There is no hurry to buy now as greater opportunities could arise next year.

Good luck to all hotcopperites. I will be buying some BHP when they fall below $20, and will probably stick with bluechips and mid caps on the way up.

loki