The Prospector News

Gwen Preston – “Follow your plans, not your emotions”

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Gwen Preston – “Follow your plans, not your emotions”

 

 

 

 

 

It’s no fun out there, no matter what kind of investor you are.

But don’t act on emotion. If you didn’t sell a two or three weeks ago, remember why. It’s likely because you decided that you preferred to just hold through whatever comes because you expect mining stocks to perform well out the other side and you are a buy-and-hold investor, not a trader.

 

That’s a fine decision.

 

It was also a fine decision to sell some stocks ten days ago, to reduce exposure slightly and raise cash to have available to deploy should lower prices become available. That was the right decision for someone like me who likes to do some trading, to mitigate short-term market impacts, while holding most stocks through whatever comes.

 

What’s not likely a great decision is to watch markets falling day after day and eventually get too upset and sell. That is the process most likely to see you sell at or near the bottom when lots of investors capitulate to the emotional strain of times like this.

 

When you’re stressed, step back and think about why you own mining stocks: because you believe gold has to perform well out of this global financial setup, because value plays are likely to shine now that growth has had its run, and because the green revolution is ramping up metals demand just as supplies are declining following years of insufficient investment.

 

Those arguments remain totally valid. They have been relegated to the sidelines for the short term, unfortunately, because that’s what dramatic moments in economic and investor history do. But they will resurface.

 

So stick to your plan. If you plan to hold through – perhaps don’t look at your portfolio for a little while. If you want to try to buy at the bottom – I don’t think we’re there yet.

 

I wrote a note on last week’s inflation print, the market reaction, and how retail traders – many of whom started investing only two years ago and so haven’t seen a bear market yet – could spark another leg down in the general markets. It’s a short note though, as my outlook hasn’t changed much. I’m glad some of the stocks in the Maven portfolio are holding ground better than average. I’m glad I exited a few and reduced exposure to a few others. And the ones I decided to hold come what may – I am trying to not worry about their share prices at the moment.

 

 

Posted May 16, 2022

Share this news article

MORE or "UNCATEGORIZED"


Osino Receives Multiple Project Finance Offers For the Development of the Twin Hills Gold Project, Namibia

Highlights Indicative term sheets received from eight European, A... READ MORE

February 3, 2023

Filo Mining Reports 1,776m at 0.70% CuEq and 1,297m at 1.00% CuEq

Filo Mining Corp. (TSX: FIL) (Nasdaq First North Growth Market: ... READ MORE

February 3, 2023

Candente Copper Announces Closing of Private Placement With Fortescue Metals

Candente Copper Corp. (TSX:DNT) (BVL:DNT) is pleased to announce ... READ MORE

February 3, 2023

OROCO DRILLS 187.9 M OF 0.58% CU EQUIVALENT AT SANTO TOMAS

Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) announces assay res... READ MORE

February 2, 2023

TINONE REPORTS COMPLETION OF SUCCESSFUL PHASE 1 DRILL PROGRAM AND DISCUSSES FUTURE PLANS FOR ITS GREAT PYRAMID TIN PROJECT, TASMANIA, AUSTRALIA

TinOne Resources Inc. (TSX-V: TORC) (OTCQB: TORCF)  is pleased t... READ MORE

February 2, 2023

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2023 The Prospector News