So what is the point of it all. A question that has spanned time and space (and therefore markets, as they are a tiny subset) since the beginning of consciousness.
Unless one has figured that out, then there is no coherent strategy to investing in the markets (or indeed living for that matter).
A few here have figured it out. Most have not, which is clear from the observation that the responsibility for investment outcomes, has been placed on third parties, so its then convenient to be the victim, subject to the actions of others (including the markets).
History is our biography. In the last bull market from 2000 to 2011, I pulled an eight-figure profit out of the miner market, off a five-figure starting number, and that was after multiple drawdowns of +90% on many rocks, over that eleven year period. In 2008 I was in the -90% abyss, but hung on regardless. 10% of the portfolio made 90% of the profits. This is the Pareto principle in action. So assuming we have 100 members here, 10 will make 50% of the collective profits. This is the default condition, and therefore equal outcomes for all in the group are not possible. Hence why hand holding is suboptimal.
The 2000 to 2011 returns, is what I intend to achieve once again. This is why I feel qualified to offer guidance in the form of Rock choices. This is why we brought this site to you and others who see the incredible potential in this tiny market. This sector will again see the kind of profits I am speaking of, but it will do so in its own sweet time.
Earlier this year at the New Orleans Mining Conference, I had a long lunch with Rick Rule. Rick bought the uranium sector in the last cycle, when it was hated. Only to be followed by another brutal +50% drawdown off the lows. Years later, the worst performer was a +20 bagger … well its history now, but you know the story.
History repeats. History is our biography.
Time constraints preclude me from constant hand holding at SpockM. “When are the next drill results” … does it matter? No. ITS NOT THE POINT. And besides, it does not work out well for those whose hands need holding….as they have no point defined, and they only get to share Mr Pareto’s left overs at the end of the day.
So now being on the Board of three public companies, and the CEO of one, as well as being intimately involved in the leading edge change in financing for this sector, time is constrained … and therefore handholding strategy is not possible, and not even desirable as the outcomes are predictable and suboptimal.
Because of these time constraints, I will be consolidating SpockM into SpockG. SpockM subscribers who have subscription time left will be transferred across to SpockG, with an additional one month added to the subscription.
SpockG buys and sells the large liquid ETFs and stocks, based on macro themes in the global markets. After integrating SpockM, there will be some posts on the micro miners in general, and occasional specific miners when warranted, but the emphasis will be on the larger liquid ETFs and stocks, with generally once a week update. The rock portfolio will continue to be held, for as long as it takes …to realise the point. Plus, macro views on the sector in general will continue to be provided.
The rock portfolio is comprised of micro miners and explorers, whose projects and management have merit. I have researched and followed each and every one. I know the management. These Rocks tick off all the right boxes in my opinion. Does not mean I am right for all Srocks, but again that is not the point. Only 10% will make the big gains. The 100 baggers.
When the climate is right, most of these rocks have a greater likelihood of outperforming. The biggest issue with all of them is lack of liquidity, and lack of market depth, and presently a complete lack of interest hence they are volatile beyond belief. This is the default condition in this sector. And unlike the SpockG stocks and ETFs which are large caps with depth and liquidity, so entry end exiting does not move price generally. Unlike the rocks where a $1000 sale on a bad market day, produces a 25% move down, for example.
However this too is cyclical and as Rick Rule found out in the Uranium sector, “every dog will have its day.” Its just not today, or tomorrow, or next week, or next month … but the further out in time, the more likely the dog wakes up.
The “Rocks” are like lottery tickets only much better in that they never expire. You put them in a safe place and forget about them . Go about your business and your life until one day your numbers are called. And your life changes.
The big bull moves off the December 2015 lows was unpredictable, but I still managed to pick it within a day or two, as the signs were there. Was it luck? Perhaps. Many members who joined SpockM early made wild gains in a short time, before the big consolidation started.
What was surprising was that big move stopped dead in its tracks, like someone threw a switch, to be followed by 2 years of a grinding low volume consolidation. This is quite unexpected and unprecedented. The market will humble everyone, before it decides when to show its next hand. When most least expect it and when most have given up … Boom … and it leaves them behind once again.
As Rambus likes to remind us. If this was easy everybody would be a billionaire.
And finally may I share what I have found to be the three fundamental rules that enable one to transcend the market chaos, a subset of the human condition:
1. Find the horizon. Look above it and find the highest possible star, that you can bear to achieve. That’s YOUR target. That’s YOUR responsibility. Not mine or the markets. And that is THE POINT.
2. Tell the truth always. At least do not tell lies to yourself and others. The devil is the king … of the liars. At the bottom of the abyss, are the corpses of the liars.
3. You and the Family. That’s the foundation of your universe. So, get that in order. Without that, the wall falls down, when the storm arrives. And its coming. Be certain of that. When you least expect it. 2008 or shades of that, will repeat in your lifetime.
Audept and Fully will fill in the details of the new blended site and you will be directed there soon. See you there.
Trade Well and Prosper.