Get Ready for a Firesale (November 09, 2016)

by FI Fighter on November 8, 2016

in Lithium Updates, Precious Metals Updates, Stock Investing Thoughts

trumped

Everyone claims to LOVE a good firesale… Well, beginning tomorrow morning, investors should get their wish…

Right now, chaos reigns supreme across all asset classes…

For instance:

futures-11_09_16

screen-shot-2016-11-09-at-3-43-54-pm

For the longest time, I’ve been pounding the table about risk vs. reward… Why risk dollars chasing after pennies?

That’s a losing proposition…

The fall season has shown to be historically volatile, so for anyone with lots of cash on hand right now, you gotta be licking your chops…

You are going to get your wish…

As for me, I’m a one-trick pony… All this time, the only thing I’ve been buying are commodities: gold, silver, lithium, graphite, cobalt, copper, uranium, etc…

In other words, mining stocks… Particularly, precious metals, the absolute most hated asset class in 2015.

I’ve got a lot of dry powder, but I may not jump all in at once… I’m a little gun shy since I don’t know how crazy things will ultimately get…

 

Anyway, many like me have been clamoring for a much needed market crash for awhile… Will this time finally be it?

 

Happy Hunting!

Related Posts :

{ 11 comments… read them below or add one }

1 JimNo Gravatar November 9, 2016 at 4:50 am

Black Friday sales are coming early this year FiF! I’ve got my dry powder ready as well, and can’t wait to go on a purchasing spree, if there is a significant drop.

Reply

2 JPNo Gravatar November 9, 2016 at 6:29 am

I may wait for the knife to fall a bit further over the coming weeks.. but as sad as it is I have also been waiting for some sort of collapse for a while now.

Reply

3 My Dividend PipelineNo Gravatar November 9, 2016 at 7:03 am

FI Fighter,

I hope you are right about a big drop, but I think once people digest everything the markets probably shoot higher pretty quickly. We’ll see!

MDP

Reply

4 FI FighterNo Gravatar November 9, 2016 at 7:03 am

Wow, what a reversal we are seeing this morning!

Absolutely incredible, I am speechless…

Sorry bargain hunters, better luck next time!

Reply

5 JCNo Gravatar November 9, 2016 at 7:57 am

The change in outlook just goes to show how hard making short term bets is. At one point the DJIA futures were down 800+ last night, by the time I checked this morning they were -250. First 30 min of trading and the DJIA was +50. Talk about a swing.

Still prefer to sit on cash although I’ve “invested”, mainly through options exposure with 10%+ downside protection, about $15k this morning. I’ve still got lots of cash ready though, >$100k, if we do get a selloff since I just rolled over my 401k. Hope to get a chance to buy some great assets for cheap.

Reply

6 FI FighterNo Gravatar November 9, 2016 at 9:01 am

JC,

Exact market timing is impossible, but the events from yesterday to today just goes to show the importance of having liquid cash ready to go whenever opportunities present themselves… Anyone buying in the Asian/Aussie markets made out like a bandit, in terms of good deals…

Sitting on the sidelines is really boring stuff, but when you get those rare opportunities to buy into immense chaos (fear), that’s where the bulk of your returns will be made…

Most investors, unfortunately, have little to zero patience to wait out those rare, but most lucrative opportunities.

Glad you got ammo loaded and ready to go! I think your patience will be greatly rewarded… We just don’t know when! 😉

All the best!

Reply

7 JCNo Gravatar November 9, 2016 at 12:59 pm

I still can’t believe that we saw an 1100+ pt swing in the DJIA from the 800 drop in the futures last night to the 300+ pt gain today. That’s absolutely crazy. Even if we saw the drop in the futures carry over to the markets today all it really would have done is take the market, as a whole, from overvalued to slightly less overvalued.

My plan is still to try and be patient with the capital and wait for better deals. Although I have to confess seeing this much cash sitting there is hard especially since I haven’t invested new capital in over a year due to various reasons. So keeping my psychology in check is going to be key to getting great deals and generating great returns.

Reply

8 FI FighterNo Gravatar November 9, 2016 at 2:54 pm

JC,

Yeah, I’m totally baffled as well… I have NEVER seen anything like this, ever!

And agreed, even with that 800 pt drop or so on the Dow Futures last night, most shares still wouldn’t be “cheap”… But usually a steep decline like that feeds on itself, as trades go bust, traders panic, and the rush to the exits just escalates as the stampede out the door begins.

I was expecting a few days of massive sell offs, thinking we would eventually encroach on something akin to an “oversold” condition, which would be a good time to strike…

Well, too bad, that certainly didn’t happen, at least not in the states… But we’ll see… It’s back to the patience game and choosing to be a really picky buyer before pulling the trigger.

Cheers!

Reply

9 AlexNo Gravatar November 9, 2016 at 10:20 am

I liquidated my portfolio besides mining silver and urbanism lithium and I was so ready to have some fun today but …… guess we shall wait made some quick money on pharma thou !

Reply

10 FI FighterNo Gravatar November 9, 2016 at 2:58 pm

Alex,

Haha, we were so close, yet so far!

Similar to you, I’m ready to go, and right now my stock portfolio is exclusive to mining stocks… which surprisingly (or not) is where I’m still locating the best bargains… Lithium, graphite, cobalt, and all those clean energy stocks are very compelling right now, now that the Tesla hype has faded away (but I am 1,000% convinced it will come back in even greater force once Model 3 inches closer and closer to production in late 2017/early 2018)…

I’ve been having a lot of fun loading up on the best clean energy mining stocks at a time when the sector has been selling off. 🙂

Happy Hunting!

Reply

11 Investment HuntingNo Gravatar November 9, 2016 at 3:36 pm

The day will come. People are still in shock. On the bright side, I was able to close my healthcare related options today for profits. I had planned on those puts tanking with a Hillary victory.

Reply

Leave a Comment

 

Previous post:

Next post:

Copyright © 2012 FI Fighter