I don’t know precisely why mining shares and the underlying metals top or bottom at different times. There are a variety of reasons one can come up with, probably all valid, but in the end, no one really knows why.
The important point is this: As I noted earlier, don’t assume anything when it comes to the markets. Don’t have any preconceived notions of what they can or can’t do. Or what one market or sector can do versus another.
When you do that — and you have preconceived notions or accept commonly held beliefs — I can guarantee that it will trip you up and cost you way more money than it will ever make for you.
That’s always been true in the markets. Ask experienced investors or traders, and they will tell you that just about the worst thing you can do is accept commonly held beliefs or have preconceived notions.
That’s especially true with today’s markets. We are still in a financial crisis. We are in an era of drawn-out sovereign debt crises which can turn the markets — and commonly held beliefs and market relationships — on their heads and inside out.
I don’t want that for you. I don’t want you turned upside down and inside out. I want you with your feet on the ground, thinking objectively and independently. That’s how you will best protect and grow your wealth.
I consider it largely my job to help you do that. It’s why I am always challenging market opinions … often taking a contrarian’s point of view … and why I spend the majority of my time busting all the market myths that are out there.
There are many of them. And the simple truth is that most of what you hear from the talking heads in the financial media is pure garbage.
That said, I will always endeavor to help you see the world a bit differently, so that you’re not sheep led to slaughter.
Right now, here is what I recommend in regards to the miners: Be patient and wait for the above ETFs to close above those downtrend lines that you see on the charts. It’s the more conservative approach, but it should prove to be a nice way to get back into the mining sector.
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