Archive for February, 2007
February 28, 2007 - On our home page of our website, I have posted these sentiments about what I term the Peak Investment Crisis: “As of the 4th quarter of 2006, the fact that it hasn’t started yet is a tribute to how crafty global governments have been in hiding from the public the factors that will expedite its onset. However, once it gets started, a fast and scary roller coaster ride is sure to follow. Read more …
February 28th, 2007
February 28, 2007- Just a short addition to my last post. If you have NOT yet established positions in any gold stocks, with the world spot price of gold down another $11 an ounce from yesterday’s New York close, this is a great opportunity to do so as gold stocks are being dragged down by the general global sell off in equities. However, I would still exercise caution, establish a less than full position, and then keep adding to them on dips. However, if this correction in the global equity markets does extend out for a couple weeks or so, I do expect gold stocks to begin recovering sooner than global equities.
Technorati Tags: gold, gold stocks
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J.S. Kim is the founder and Managing Director of SmartKnowledgeU™, a comprehensive online investment course that uses novel, proprietary advanced wealth planning techniques and the long tail of investing to identify low-risk, high-reward investment opportunities that seek to yield 25% or greater annual returns.
February 28th, 2007
February 28, 2007 - If you have been reading my blogs consistently, there is 0% chance that you should have been caught unprepared by the recent correction of the Chinese markets by more than 9%, and the associated 3%-4% drop in the U.S. markets. Certainly losing 9% in one day would have been no fun at all. That is why you can see here, with two Chinese stocks we purchased, FMCN and LFC, we sold both once we had reached approximately100% profits on both in a very short time period. Read more …
February 28th, 2007
February 25, 2007 - Here is a story that was running in the U.S. markets last week out of San Francisco:
“The Securities and Exchange Commission has begun a broad investigation into whether Wall Street bank employees are leaking information about big trades to favored clients, such as hedge funds, in an effort to curry favor and has requested a wide range of information from at least four major banks” including Merrill Lynch, UBS, Deutsche Bank and JP Morgan. The SEC sought records regarding all stock and option trading data for themselves and their customers for the last two weeks of September. Basically the SEC said that they wanted to discover the extent of “front running” that exists, the act of insiders buying or selling stocks and options ahead of major large volume institutional purchases or sales that virtually guarantees profits. Read more …
February 25th, 2007
February 23, 2007 - There is something known as martial art’s intuition. Every martial artist that has sparred has experienced this intuition. You know when your sparring partner is going to throw a punch or deliver a chick before they do so. This intuition even translates outside of the dojo in being able to accurately judge the character of complete strangers. Read more …
February 23rd, 2007
February 23, 2007 - I remember nine months ago when gold was trading about $570 an ounce how many people that I told to buy gold stocks did not buy because some of the big names like Stephen Roach, the Chief Economist of Morgan Stanley, were receiving lots of media attention for their comments about the commodity bull run being over. Unfortunately, today’s average investor is somewhat like a robot.They ignore the #1 rule of highly effective investors: Learn how to do it yourself – and instead hand their money over to a financial consultant at a large global firm that barely knows any more than they do about investing Read more …
February 23rd, 2007
February 21, 2007 -
One of the most important determinants of building wealth during your educational life would have been a solid course in the history of education. Why? Because a solid understanding of the roots of institutional education would enable you to realize that most education puts you in debt at the same time as never teaching you how to build wealth. Henry Ford once stated that it was a good thing that people in America had no understanding of how banks truly worked because if they did, there most likely would be a revolution by tomorrow morning. Read more …
February 21st, 2007
February 8, 2007- Occasionally, I’ll revisit prior blog entries and provide a very quick update. Several months ago, I said that I would avoid buying stocks of Chinese banks. Despite the recent comments of a top Chinese politician that the Chinese stock market was manifesting the signs of a “bubble” ready to burst, China’s economic growth appears to be more sustainable for now in comparison to India. My comment about avoiding Chinese bank stocks despite the great fanfare their IPOs were receiving in the global financial media was simply due to the fact that the sacrifice of strict risk management controls in pursuit of profits and spiraling growth makes a fine recipe for future disaster. Read more …
February 18th, 2007
February 16, 2007 - In martial arts, there is the concept of mu shin ryu, which loosely translated means “abandon the mind.” In almost every blog, I speak of how martial arts concepts can make you a better investor. In this instance, it is not the application of this concept, but the recognition of this concept and how it is applied to your disadvantage, that is important. Almost every school of martial arts, if it is a proper one, will teach some variation of this concept. Read more …
February 16th, 2007
February 15, 2007 - There are 7 habits that highly effective investors engage in regularly that separate themselves from the thundering sheep herd. These 7 habits, in fact, often lead to highly effective investors acting very differently from the average investor not because he or she believes in contrarian investing, but because the highly effective investor utilizes information that the average investor does not consider in making his or her investment decisions. It is not the behavior that makes someone a highly effective investor, but it is the information a highly effective investor uncovers that makes his or her investing behavior drastically different. Read more …
February 15th, 2007
February 12, 2007 - If you look at this chart for Newmont mining (NEM) as of February 9, it illustrates that large institutional money is still not on board with gold yet and in addition, for this reason, this a solid anchor for your gold portfolio. How do I know from looking at this chart that institutional money is not on board yet? Because NEM is the most well known major gold stock (actually it may be the only one though I’m not sure) that is a component of the U.S. S&P 500 index. As such, this is the one stock that all institutional managers are familiar with and the one they will dump loads of money into once they finally get on board with gold. Read more …
February 12th, 2007
February 8, 2007 - Most professional athletes suffer from young person’s disease – invincibility. They feel as though short-lived careers will happen to the other “guy” or the other “girl”, not him or her, and consequently fail to adequately manage their finances during their often, very short-lived, prime-earning years. Of course, there are always exceptions, such as New York Giant’s running back Tiki Barber, who has decided to walk away from the game during the prime of his career to preserve his health and pursue other professional interests such as broadcasting. Read more …
February 8th, 2007
February 7, 2007 - Let’s take BHP Billiton, the world’s largest, diversified mining company, to illustrate the point of this blog entry. For the past couple of months, when BHP Billiton was trading below $40 a share, and it stayed below $40 a share for a long time, I told several friends that were looking for something to buy that BHP under $40 a share was a good buy. For two months, they could have bought BHP between $37 and $40 a share, but yet I doubt that any of them did. Why? I know the mindset of most investors. Read more …
February 7th, 2007
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