If you buy a share in a company because you think the price will go up, you are betting that you can see into the future. A bad bet, in our opinion. The unknown unknowns are likely to work against you. Better to buy a share that you want to own — whether the price goes up or not.
Likewise, the time to buy an oil stock is not when you expect war with Iran. Better to buy an oil stock when no one expects war. Then, the unexpected can only help you.
And how about gold? Buy it when people predict it will go lower, not when they expect it to rise. Of course, you don’t know where it will go. But when people think it is going down, odds are…it is cheap.
Yeah, we have the things that really matter. Too bad about the money.
Read more: Hopes, Fears and Preparations for 2012 http://dailyreckoning.com/hopes-fears-and-preparations-for-2012/#ixzz1imx2yT8P
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