How to Add To Your Investments
The time to buy (or add to) ones position is either when the investment vehicle is out of favor, or it has reached an extreme in its normal pricing parameters. About gold, Justice Litle, in Wealth Daily Profit Letter opines:"As a result of this, gold has backed well off from $700. Precious metals stocks have retreated to their lowest levels in months, playing the role of wallflower at the cocktail party. "This makes me smile. Underlying conditions for gold's continued run are about as strong as they have ever been. Most investors simply don't see it, ironically, because they are too busy focusing on the cheap-money frenzy that guarantees such bullish conditions for gold in the first place! "I, for one, would not be surprised to see $2,000 gold in 2008, or even $3,000 gold in 2009. But, to mangle a phrase, that is then and this is now. Wall Street often gets distracted... "And watch gold and silver too, with an eye for establishing (or adding to) long positions in precious metals stocks when the time is right. From a long term perspective, precious metals are being abandoned and ignored right now, which is excellent news. There is 'parabolic potential' there worth pouncing on." Frank Holmes, CEO of U.S. Global Investors, in The Rise of the Chinese Consumer writes:"Standard deviation, also known as 'sigma,' is a valuable statistical tool for gauging a fund's volatility, as it measures how much the fund's returns vary from their mean, or average, over a given period of time.For most funds, returns will be within one standard deviation (or one sigma) of their mean 68 percent of the time, and within two standard deviations (two sigma) of the mean 95 percent of the time. Returns fall within three sigma 99 percent of the time." Staff Reports - Free-Market News Network
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