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Craig Brockie
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Craig Brockie offers free investment tips through Facebook and Twitter to help you invest like a professional and win. Craig is an investment fund manager for accredited investors. With over ten years of investment experience, he's been a professional investor the past five years. Craig retired... More
My company:
Theta Investments, LP
My blog:
How to Invest Like a Professional and Win
  • What Is Contrarian Investing? A Winning Strategy! 2 comments
    Jul 12, 2013 4:22 PM

    What is Contrarian Investing? Please click here to watch a 90-second video with you that explains what contrarian investing is. It's so simple, yet misunderstood.

    It's been nice to see the gold market rebounding this week. Whether we've seen the final bottom yet or not, the next 12 months should be extremely profitable for those who had the courage to buy when everyone else was afraid to and the patience to hold on until the everyone else wants to own gold again. This process from bottom to top has taken an average of just seven months in the current bull market in gold which began in 1999 at $250 ounce. That's right, even taking into account the major price correct over the past two years, gold is sill up over 5x!

    Again, you have to ask yourself, where were all today's "financial experts" in 2011 when selling gold above $1900 per ounce would have been a relevant suggestion? That's right, the conventional "wisdom" at that time was that gold was the place to be. While I didn't have a massive holding of physical gold in 2011, I did liquidate all of my coins the same week the price peaked. I wasn't holding gold or mining stocks in 2008 when they tanked either. In fact, in 2008 I was holding only short equity positions and cash until after the collapse in October. This YouTube video I published in late 2007 shows that I saw the collapse coming and I happily share my brokerage statements from 2008 with all prospective new investing clients.

    The bottom line is that although I've been writing about gold a lot lately, it's not because I'm a "gold bug" or irrationally in love with the metal. It is because I'm opportunistic. Gold mining shares have recently been trading at multi-DECADE undervaluations by many measures. An investor dealing wholly on logic, wants to buy the most irrationally oversold assets because that's where the best opportunities for profit exist. And it's not like we're buying into an unproven market. The current gold bull market is in its 14th year! The trend is your friend.

    I published a couple of other pieces this week that I wanted to share with you. They relate to two pieces of big news this week.

    The Nasdaq Is Back... Is It Time To Party Like It's 1999? talks about how the Nasdaq this week has reached its highest point since the year 2000.

    My other article introduces a man I have a huge amount of respect for. His name is Bob Duggan. Bob is an extremely generous philanthropist and hugely successful businessman. His company's share price has increased over 40x (not a misprint) since he took over as CEO less than five years ago.

    The biggest news for Bob and his company came less than 24-hours after I published my article, when the company announced that it had filed for approval from the FDA for its new cancer-curing drug. I'm happy to see such a great man enjoying so much success.

    If you are interested in contrarian investing and would like help doing so, I'm here to help. Contact me today for more information.

    Flourish and prosper,
    Craig Brockie
    Registered Investment Advisor
    Contrarian Advisors - Rational Wealth Management

    Thank you for sharing this article with a friend and encouraging them to subscribe to our free newsletter. As a bonus, subscribers receive our important report, "How to Protect and Grow Your Money."

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Comments (2)
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  • jortiz
    , contributor
    Comments (132) | Send Message
    "An investor dealing wholly on logic, wants to buy the most irrationally oversold assets because that's where the best opportunities for profit exist."


    What other assets do you figure are irrationally oversold?
    12 Jul 2013, 05:19 PM Reply Like
  • Craig Brockie
    , contributor
    Comments (156) | Send Message
    Author’s reply » Thanks for your question. I believe that most cyclical assets are irrationally oversold at the moment, with #gold mining being the most extreme example. ETFs that are involved with commodity production or emerging markets appear to be reasonable alternatives.
    13 Jul 2013, 12:44 PM Reply Like
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