Quote:
Originally Posted by Vegas69
Seems like it may be a good time to buy GLD. 
I've also been seeing that mining companies of precious metals can be strong in bear markets. They look really volatile, but timing is everything. 
I was up Elk hunting two weeks ago near a major Nevada gold mine. My friend builds drilling sites and reclamation. He's been crazy busy this year working for the mine. They are moving some serious dirt up there and drilling for new mines constantly!
I like what Buffet says, don't ever lose money. If we put ourselves in a comfortable position, many times, we can wait for the right timing. It can take 20 years, but... And I think that's been what you are trying to express all along.
I like some buckets that flourish when the market sucks. I have a majority of $ on the flip side. My whole premise here is to be prepared to find ways to take advantage when the tide goes out. Why not hedge some money on the down cycle? You know it's coming someday. |
Okay --- so here's where we WANT to get to.....
Over time if the stocks you own and the houses you own are up lets say 50% over 5 years..... and they're paying you 5% average dividend.
When the market goes to crap -- you'll be DOWN 20%..... but your share or house value is UP far more than that IF you've owned the stuff for awhile.
Now on top of that -- you're collecting 5% cash all along the way... and you'll continue to get that until when? Until the market turns around and you're right back where you were and plus some. It's the way it's been working since the beginning.
So --- On just my WF account I collect over $400K a year in cash off of the dividends. Why would I sell that money maker because "MAYBE" the value of my holdings might go down temporarily? I don't run to sell my apartment buildings --- I bought them because they produce CASH -- and "eventually" we'll break even or sell for a gain I hope. We'll CHOOSE when to sell when the timing is right.