Craig Brockie's  Instablog

Craig Brockie
Send Message
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
  • Contrarian Investing For A Profitable 2014: Sell Stocks, Buy Gold 1 comment
    Jan 21, 2014 3:57 AM

    Contrarian investing is a lonely game. Oddly, most investors prefer buying high, when almost everyone else is buying. These same retail investors also have a reliable track record of selling low, again when most others are selling.

    With the US stock markets clearly near another bubble peak, the average investor is again getting lured into an economic collapse. The 20-year chart for the S&P 500 index below is worth a thousand words and billions of investment dollars. Notice the seven year cycle, with peaks in 2000, 2007 and 2014.

    S&P 500 index: 1994-2014 (click to enlarge)20-year chart of S&P 500 indexThe only question right now is how irrational the current US stock bubble will get before it pops. Will we see a new all-time high in the Nasdaq to completely suck everyone in before it begins its collapse? Will the S&P 500 shatter 2,000 before it again punishes the masses?

    With bond prices falling, it's possible that the massive amount of money flowing out of bonds will drive US stock prices even higher before they begin what will surely end up in a free fall.

    That said, it appears that the VIX bottomed last March, defensive stocks began their bear markets last spring and the recent plunge for retail giant, Best Buy could be warning signs that time is running out on the biggest short-term stock market rally since the Great Depression.

    Contrarian investing, although unconventional, is proven to be consistently profitable over the long term. For that reason, I'm not completely alone in my current outlook. Here are some viewpoints from others that are similar to my expectations.

    If you lost money when the dot com bubble burst, real estate bubble popped or in 2008 financial crisis, please take this opportunity to prepare BEFORE the current stock market bubble pops.

    My free report, "How to Protect and Grow Your Money in 2014" can help you do just that. Get your copy today!

Back To Craig Brockie's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Investor Talkroom
    , contributor
    Comments (569) | Send Message
    Good advice.
    I sold all other stocks and bought gold and silver mining shares. And adding more every month.
    Physical gold is very inconvenient:
    You have to pay premiums and store it somewhere.
    If you own gold you are an easy target for the government. They will probably impose tax on gold holders.While shares are owned by bankers - so nobody going to touch them.
    21 Jan 2014, 08:31 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.