Investors - Will you be a Winner or Loser?
In the current markets seems all investors, virtually in the world, are being rewarded with gains in their portfolios.
The U.S. markets as measured by the Dow Jones Industrial Average (DOW) and the S&P 500 continue to make new highs as do most of the foreign stock markets, China, Brazil, Mexico, etc.
The commodities markets, gold, silver, copper, oil & gas and others also continue to do very well as do the individual natural resource shares and/or their long-term warrants.
Most currencies are very strong with the Euro, British Pound and Canadian Dollar continuing their upward climb, of course, at the expense of the U.S. Dollar.
If you are like me, many of our friends still think we are crazy for investing in the natural resource sector and they are bragging about the DOW hitting new highs.
We should all be reminded that investing and the markets are basically a game, albeit, a serious game with our monies at risk. As in any game, however, there will be winners and losers unlike the current situation in the markets, where almost everyone is winning.
So, what is going on?
Liquidity and so much of it, continues to drive the markets around the world, but for a few brief moments yesterday (Wednesday) with Ben Bernande talking about inflation, I thought we finally had a separation. At one point, the DOW was down well over 100 points, the HUI (gold index) was up very strong as was gold and silver and the U.S. Dollar on the verge of total collapse. It actually appeared the markets were starting to make some sense (at least to those of us, bullish on the natural resource sector).
Perhaps we have not yet reached the point where the natural resource sector shares will continue higher without the benefit of and support of the general stock markets. But, we believe the day is coming very soon as the U.S. Dollar breaks down and that gold and silver will explode upward as they get the attention and respective of investors around the world.
When this game is over and the music stops there will not be chairs for all players. There will be some winners and many losers. We believe the winners will be those investors that have aligned themselves to the natural resource sector and the many different ways to invest therein. An incredible number of choices, we as investors have, mutual funds, ETF's, gold & silver bullion, mining shares and/or their long-term warrants, etc.
The message here has to be one of commitment and patience, picking your investments carefully and enjoying this 'game' knowing that when the music stops we will be sitting down and richly rewarded.
For those readers interested in education and information on warrants, we encourage you to visit our website where you can now signup to receive our Free Saturday newsletter which is appropriately titled, The Warrant Report.