Getting Well Positioned (May 04, 2016)

LH Terminal (6 of 23)

I am done with my water fast. I made it through 14 days, and now I’m just relaxing and refueling. With that said, I wanted to address today’s drop in the market. There’s the old saying, “Sell in May and go away.” With everything dropping like it has this week, it’s looking like this particular strategy isn’t always such a bad idea! All joking aside, when it comes to long-term investing, however, sometimes the easiest strategy is to just do nothing and let time do it’s thing…

Over the last year or so, I’ve been working extremely hard to build up a portfolio of gold and silver mining stocks. By the beginning of this year, I was more or less finished with my buys and even though prices were super depressed, I was satisfied with my progress… So, now that the tide has started to turn, and right now many are arguing the tide has indeed shifted back yet again (it’s the start of another brutal bear market!), I take complete solace in knowing that I did just about everything that I possibly could have done to position myself for long-term success… In other words, although I do believe that the strategy of “selling in May and going away” does have its merits (from time to time), when it comes to gold and silver mining stocks, I’m just going to continue doing the easy thing…

Nothing…

I don’t have a motivation to sell (it’s far too premature for that!), and not much of an inkling to buy, either… The primary reason being that I’m already well situated… I did my homework last year, bought the stocks that I wanted, and now I’m in a position to just kick back and wait it out until my thesis plays out… All along, I’ve felt like I needed 3-5 years to see this speculation pay off… I still stand by that. So, although I get accused of having no gameplan on a regular basis, I would argue that I actually do have a firm plan in place with all my “gambling”.

I will not get shaken out of this trade… Actually, I think down days like today are healthy as it discourages speculators from piling on in too aggressively, at any costs… There’s been a lot of lunacy stupidity in the gold and silver space, lately, with price actions (momentum chasing) that have left me flabbergasted, to say the least…

“Never confuse a bull market for brains!”

Everyone thinks they are the next Warren Buffett when stocks are going up, up, and only up!

 

Nevertheless, I do think the bull market in gold and silver is still intact (we are entering the 2nd inning now), but I would expect to see the summer doldrums start to dampen some of the progress made in the gold and silver stocks.

As always, buy right, sit tight, and just chill the f out! If you’re getting emotional over some down days, your personality probability isn’t suited to play such a volatile sector.

 

Moving right along…

 

It’s funny, I started off this journey as a pure cash flow/passive income investor… All that I used to care about was replacing my work income… Now that I’m retired, I’m spending a lot more time these days focusing on appreciation gains, whether it be from gold and silver mining stocks, or lithium stocks. What gives? Why the change in philosophy?

 

Because there ain’t no stinkin’ good cash flowing opportunities out there right now! And I don’t want to take on any more real estate debt…

In a perfect world, would I love to be able generate more passive income and cash flow?

Absolutely!

Who wouldn’t? Seriously!?!

C’mon, I’m retired, I could use all the help that I can get! I’ve got to pay for my own medical plan/bills these days…

But, no, I ain’t going to force myself to invest in “high yielding” products that I don’t believe are good investments at this time… As always, keep an open mind… It’s all about the risk vs. reward curve! Never forget that…

Never chase yield at all costs… I will NOT risk 30% of my portfolio trying to squeeze out a crappy 3% yield!

That’s a loser’s proposition…

But I will gladly risk 50% of my portfolio if I can realistically expect to see returns in excess of 100% over the next few years (which I think are possible through gold/silver/lithium).

But if you can show me a “safe” product worth investing in that can earn me 15% cash-on-cash returns, I’m all ears!

Until that happens, I’m going to stick with my gold and silver thesis… Also, these days, I’ve shifted gears yet again and added some shares of some lithium stocks to the mix as well. With the lithium stocks, I’ve made a few purchases this week, which I will detail at a later date. Just like with gold and silver stocks, I really just want to be well positioned for the future because I think I have a pretty good idea how this story ultimately plays out… The day-to-day fluctuations and gyrations?

I really don’t give a sh!t…

In the short-term, these stocks can do whatever they want to do (it’s all just noise anyway)… My Modus Operandi is to arrive at the airport 2 hours before departure… I have no problems waiting for the market to eventually agree with my thesis, but I really, really, really do hate chasing investments!

Which is why I’ve been an active buyer of lithium stocks this week (many are getting beaten up right now with the rest of the market).

For the most part, I’m just focusing my energy on resting up and breaking my water fast… But since I have been actively buying, I’ve been sending out daily alerts to subscribers with all my latest trades and all the juicy details…

 

If you are interested in staying on top of my wheelings and dealings, I would encourage readers to subscribe to updates.

 

I still gotta rest up and get right… But I’ll be back soon.

 

Fight On!

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Phil
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Phil

Thanks for the updates! keep them coming

BeSmartRich
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Good job finishing up fasting. That’s an amazing accomplishment that only 0.0001% of people would be able to achieve in their life time. Glad to see your thesis is playing out and for more to go.

Cheers!

BSR

Phil
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Phil

Any thoughts on Tanzanian Royalty? Seems like they are undervalued.

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