Monday, January 23, 2006

Jim Rogers - Commodities & Gold

Jim Rogers knows how to speculate and profit before the investment crowd arrives.

Gold is a very hot market right now, and is likely to stay hot. Rogers believes there are better commodity markets to explore.

I would listen to Jim Rogers.

Read this article, one of many reflecting Rogers outlook and success. Commodities are at the start of a solid bull run. The waiting for the initial move is over.

This is a good time for us gold bugs to take a little profit and diversify. Gold will continue it's bull market, but there will be some hard and fast declines that may scare you out of your positions. Get a bit smaller in gold, seek some non-correlated speculations elsewhere.

I will be wrong at times, Rogers will be wrong less often. If all your eggs have been in one basket, it may be time to move some eggs to the refrigerator.

Wealth is made through concentration, wealth is preserved through diversification.

Rogers has made his wealth, that may put him at another stage of speculation than you. With wealth you can be a year or two early with speculations, and wait for markets to catch you.

If you are creating wealth - the sweet spot of the trend for commodities seems to be upon us.

Don't try to capture the first ten percent in gold and commodities. You would have had to sit patiently and wait for that. Don't try to capture the last ten percent in the stock market. When stocks drop it could be very quick.

Asset classes move in long cycles. Financial assets, paper claims like stocks and bonds, are likely and the end of their trail. Real physical assets, commodities, gold, and such are probably at the start of their climb.

Folks will tell you the masses are always wrong. That is not true. The masses can be right for a long time in the middle of a move. It is within that trend where you will make the bulk of your profits, by sitting.

Keep your losses small - let your profits run.

It is at the end of a move where the crowd goes mad. When you, and almost everyone you know is excited or depressed about something - it may be time to move away from the herd.

  • Take a look at the Jim Rogers article.
  • Read Jim Rogers' books.
  • Prepare yourself for change.

We have started a new cycle, there will be ups and downs, the commodities trend now seems to be mostly up.

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