1. Always take plenty of profits aiming to hold 33% in cash. Always hold 33% of your spare (investing) funds in cash.
2. Aim for profit plus being free carried. Do not aim soley to be free carried. This accords with take plenty of profits aiming to hold 33% in cash.
3. Marc Faber is on the money & the highest qualification for managing a mining company is the capacity to lie.
Of all the talkers I listened to over the last 18 months on Bloomberg, Marc Faber was by far the best. He picked everything. He said:
(a) once major asset classes fall like property, they will all fall, none will be immuned, including gold. Faber was right.
(b) In June or July 2008 he screamed: "Get out of iron ore, get out of iron ore". However, BHP, RIO, Vale and the analysts said iron ore would hold and improve. Faber was right.
(c) The developing economies like China will not be immuned from the world crisis but be more affected than the USA. He was right. Whilst China was growing at 14% or so, its fall in economic growth will be greater that the West.
