Gold – the final bubble, page-4611

How on earth do we know where to invest our money in uncertain times at market tops after a bull run?

If one works on the principle that just like a sling shot, price can extend further than where the extremes suggest, you find the reasons why you want to buy a stock, sector or even asset class. If one constantly tries to pick the tops and bottoms then unless one is very skillful, it just brings out the could'ave, would'ave and should'ave regrets.

When in doubt then stay in cash or start looking at quality. I always believe after the GFC experiences that quality stocks always will be the first out shiners once the mauling has subsided. In the midst of the panic "get out at all cost", the baby will also get thrown out.

Take TRY and BDR as an example with the current rout in the gold price, why on earth do you think it will be out of the blocks first? Because it has been sold to death for 2 years?

Currently the only sectors worth looking at in the midst of this panic are the traditionally safe/defensive sectors like Healthcare, utilities and maybe Telco. Gold on the other hand is my only commodity sector I am still very interested because of the continuous drop in AUD. Some would laugh like Skol who only refer to the quote in USD. However dollar cost averaging can be utilised but on an averaging up basis and not the mechanical monthly chucking at the asset class blindly.

If I had thought there was a future in IO short/medium term, I would have bought some RIO/BHP but the situation in China is looking dicey at the moment. Too much noises to make up my mind if there is going to be a hard landing but during these kind of conditions, there is always going to be lots of noises.