George Gorski

The Industry Indicator: Buy When the Market Sells

"Buy when everyone is selling, and sell when everyone is buying". I am selectively doing what you suggest. The stock market is truely self correcting, for example, if a gold miner has a 30% power shortage, the market drives down that stock by 30%. It seems some bean counter is ciberspace is figuring out what companies are worth on a very consistence basis. When companies are beat up and down and out due to unforseen events, that is the time to buy. The political pressure and tax losses will ensure those power shortages are short lived. I watch BNN on a regular basis, not so much for the beautiful women, technical info or news, but to study the brokers. It is amazing how many brokers dont know what they are talking about, from an engineering view point. It is also amazing how many guest brokers recommend to callers to sell when their stock has bottomed out. It is also amazing that some of their top picks are those stocks that are at the peak of the bell curve. I study stocks and only listen to a very select few brokers. There is one who picks stocks based on the company value and uses a model price. This guy I can not find fault with and believe most everything he says. I used to be a long term hold investor, but too many day traders and sooth sayers have entered the scene creating volitility in stock prices. I bought Uranium stocks at their peak and will not sell until they recover. They may outlive me. My current strategy in buying stocks that have been beat up unfairly and have high demand resources as collateral. When I fished as a kid during those hot summer dog days, I quickly learned to fish at the dam outflow. There the current was fast moving and dangerous and potential reward was worth it. By comparison, when it come to my play money, I watch news flashes on the TSX listing and then go in and study the company, if the potential looks promising, then I buy. TSX makes sure the new listing is not a slime bag to protect themselves, otherwise they wouldnt list it. Stocks are cyclic, there is a time to buy into refineries, ice cubes, movies, etc. My current strategy is for the short term, I take my profit and move on. That is the only way I will get my portfolio to grow so I can retire someday. My retirement income prtfolio is now above water and is totally within my control. Anybody out their can self direct their investments, it just rquires discipline, study and patience. Have a good day. Calgary George