Opportunity for Long and Short Term Investors
By Ellis Martin
Thanks to the Fed lowering the prime by half a point, the market seems to have stabilized and mining stocks have of course recovered in large part after an almost 10 percent drop last Thursday, a brutal day for resource investments. That day proved to be the beginning of a very profitable few days for the savvy short term and long term investor. Long term investors who acquired stocks at higher prices saw an opportunity to purchase these same mining stocks at bargain prices, many of them as much as 20% or 30% percent lower than their recent prices, driving these stocks close to where they were prior to when the market tanked. Profit in play. Many held onto their new positions. Some immediately sold again on the backs of these new investors to take new profits. And many of the short sellers sold just before the bottom and profited. Others, not so lucky as stock prices popped back up again the next day.
The market is very, very volatile right now. Explosive even. But if you know what you are doing as an investor, if you are really confident and have quick assess to trading, with a great education related to trading and mining stocks, if you are proven in these areas, success in investing may be yours. Many of the rest of us, those that are more conservative are holding onto their investments. We know that this is a bit of a correction, it’s normal and seasonal, albeit stronger this summer. We know that the companies we are invested in have great management teams, potentially solid resources in the ground and cash in the bank. We know of the potential upside, the downside and we are willing to risk money that we can live without if it went away.
There is Opportunity for everyone, provided we make our decisions in educated and confident fashion devoid of intense emotion. Oh, we can applaud our successes and be happy about them, but when we loose, we take our losses in stride and look at the bigger picture, the road we began on. If the deal is real, it will congeal!! Now I’m rhyming like the right Reverend Jesse Jackson. Time to conclude this article Happy hunting!! Put your safety belts on and enjoy the ride.
