Pigs Get Eaten
posted Jan 5, 2011
Some pet phrases live long because they work. I think most of
my readers understand the pet phrase from Wall Street, "bears
make money, bulls make money but pigs get eaten." Some wise
wit was trying to remind investors that you could be bullish
or bearish and still make money but the greedy sods get their
I bought some palladium in late December of 2009. I didn't buy
it as an investment. I bought it to preserve capital. I paid
$362 and as of a couple of days ago palladium was up to $805.
I wouldn't dream of selling as I don't view buying physical metal
as investing. It's simply a way of preserving capital. But at
the same time, I wouldn't be touting the best investment of 2010
to be the best investment of 2011. Since all things regress to
the mean, yesterday's winners are tomorrow's losers.
Need I remind readers that the metals are the most emotional
of investments with many investors and, indeed, advisors acting
as if gold is some kind of a religion where it is supposed to
go up every single day? And any day that it drops at all
is "proof" of a conspiracy.
Gold and silver have gone up a lot in the last year. Anyone holding
them or shares in juniors has pretty much made a lot of money.
I have heard tales of accounts going up 100% and more in the
last three months. All things regress to the mean.
In terms of loaves of bread or quarts of milk or nickel candy
bars or gasoline or even postage stamps, gold at $1400 and silver
at $31 are damned expensive. Stop believing every tout saying
silver is going to $500. It may. but the dollars isn't disappearing
tomorrow and you don't want to live in a world with $500 silver
Investments go up and down, all of them. A correction in gold
and silver and indeed, what Bob Hoye calls the AOM market would
be healthy. Nothing goes straight up or straight down.
When everyone gets bullish, take some money off the table. I
would love to see a healthy correction here.
Jan 4, 2011