The GDXJ massacre has been a few months in the making and the pain continues… Actually, the bleeding probably won’t stop until sometime after June 17 when the index rebalancing is (finally) implemented.
I like to buy despair, so it’s probably not surprising to readers at all that I’ve been Dollar-Cost Averaging (DCA) on the way down, purchasing shares in tranches (b/c nobody knows where the bottom is).
While many retail investors are panicking and hitting the sell button, others are using these sell-off events as opportunities to load up.
Right now, fundamentals be damned… If a company (quality or otherwise) just so happens to be caught up in the GDXJ, it’s going to get slaughtered… no questions asked.
Here’s my current watchlist.
Quite frankly, all the above names look good to me… Most likely before all is said and done, I’ll probably end up purchasing all/most of those names listed as I continue working towards constructing my very own GDXJ (junior miners) ETF.
This short-term noise doesn’t scare me at all… Again, it’s a wonderful buying opportunity that is being gifted to investors right now.
And this short-term window of opportunity won’t last forever either…
I’m tracking the GDXJ selling on a daily basis…
Here’s last week’s update (share count) for all my holdings (and ones on my watchlist) that are held in the GDXJ ETF.
Still a lot of pain to come, I’m sure…
But like I said, nobody knows where the bottom is, so much caution is advised… My own strategy is to buy somewhat periodically, particularly on days when these stocks are hit the hardest and down 5% or more. Yes, I’ve been far too early with my entry points per usual, but that’s how the game goes when you’re chasing down…
Just gotta have confidence (and faith) that the tide will turn… someday, hopefully soon.
And never forget to book some profits on the way back up to de-risk yourself and reduce the overall cost basis!
Until then, gotta keep up the good fight and not get shaken out.
“Buy low and sell high.”
I’d rather get greedy chasing QUALITY assets all the way down into the ground below their 52 week lows as opposed to employing herd mentality by practicing irrational exuberance at all-time highs.
I’m convinced the disciplined approach of “being greedy when others are fearful” will lead to better long-term results than the strategy of getting into the game super late after all your friends, family, neighbors, co-workers, taxi driver and hair stylist feeds you info on the next money making hot tip…
Short-term pain for long-term gain.
Here’s an interesting message I found on a Stockhouse forum, supposedly the response from Klondex Mines (KLDX) CEO Paul Huet.
The above written response is unverified so please take it with a grain of salt…
It’s a trainwreck in the precious metals mining sector right now… As an active buyer, that’s just the way I like it.