Wednesday, September 9, 2009

YOU'VE HEARD IT BEFORE -- BUY LOW, SELL HIGH AND PROTECT PROFITS

Here at Hill And Street News, we have written that our stance was to ease into gold when the prices were right – and then to take profits along the way as gold moved higher. It is a stance that has worked.

But when things are going right, there is always the tendency to get cocky. It is impossible to know precisely how far folks will carry individual sectors or the market in general to the upside or downside because emotions are such a huge factor. But the goal must always be to remain watchful over true economic facts (and we believe that US economic problems are not all solved – the farther the US dollar falls and gold soars, the greater the negative impact on our nation’s economy) and to try to anticipate what will happen in the future, all the while taking advantage of current opportunities – acting when prices are right, taking profits along the way.

We believe that it would be a mistake to pump serious money into such an extended market when economic problems are not yet all fixed. But we will continue to look for long-side opportunities – easing into them at the right prices and taking profits along the way.

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