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04/12/15
01:03
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Originally posted by AverageJoe
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I think I should qualify from earlier posts that LT investing has different time scale to different people. Previously as a cock eyed investor, I define LT hold as buy then wait until something tells me to sell. Usually that means the pain of looking at a massive drawdown after cursing at giving away all the gains. Having gained a bit more disciplined and not trying to pick tops and bottom, I set a target and either that target is met or my target trail stops are hit. This may take 3 months 0r 1 year. That is my new definition of a LT hold.
So in this context, trying to pick a bottom in gold = a reversal in gold stocks generally is beyond my horizon of holding period I suspect. Eventually gold will come full circle, just a matter of time. If what I have been reading is correct I don't have a lost decade stuck in big positions in this metal. For the same reason I have been thinking very cautiously at BHP/RIO. The heart says a good accumulation provided I can bear the pains of potential draw downs that can last a long time.
In terms of the psychology, I am not the type of investor who is able to buy the trough and sell the peaks. I will try to profits somewhere in the middle. I'll leave the exploitation of full profits to the Pros.
If you have a full investing life ahead of you then your approach is probably the better one.
Remember there is no such thing as a right or wrong way to invest, just a lower or higher risk. Leave it to Skol to claim the ultimate price of being RIGHT. Good luck with your investments.
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Before Skol kicks me out. There are 3% leftovers.
1. ECB is just announcing an extend QE beyond September.
To increase monthly Gov. bond purchases fron 60 billions to 70 billions
2. To cut deposit rate to negative from -0.2 to -0.3
3. Lowering Greece's emergency liquidity assistance, a debt ceiling, from 84.7 billions to 77.9 billions Euro as Greece is slightly improving.
The Fed is doing opposite direction whereas US inflation is a mere 0.2% through the 12mths ending October 2015 compared to Europe inflation 0.1% and Australia 1.5%
If the NFP on Friday shows a sub 150k I'll be LONG on gold.