Why You Need an Investment Gameplan When It Comes to Gold

Gold. It has been one of the best performing commodities this year.

That, and silver.

Yet, one analyst doesn’t like gold…not the commodity price, anyway.

So much so, that he has steadfastly refused to jump on the gold bandwagon. Even as the gold price has taken off, this one analyst has stayed bearish on the metal.

It’s a brave position. But it’s a position he believes in.

It’s safe to say, this one analyst is his own man…

Too many analysts, commentators, and investors try to jump on the latest hot story.

Sometimes it works, other times it doesn’t.

The danger with buying into ‘hot stories’ is that they cool. And boy, can they cool fast.

There isn’t much doubt that gold has been one of the, if not the, hottest stories of this year.

But while buying into ‘hot’ stories can be a great way to speculate and invest if you get in at the right time, most investors don’t get in at the right time.

They get in at the wrong time.

That’s why our resources analyst, Jason Stevenson, has steadfastly refused to follow the crowd.

And as we showed you yesterday, so far at least, it doesn’t appear to have had a negative effect on the returns he’s making for his subscribers.

Bearish doesn’t always mean being bearish

Now, just because Jason has been bearish on gold as a commodity, it doesn’t mean he has been bearish on gold stocks.

In fact, a couple of his current best open positions are in gold stocks.

The point Jason makes to his subscribers is that when you’re investing, you need to have a gameplan. That’s important.

And you know what? We agree with him — wholeheartedly.

When it comes to investing, having a gameplan is important.

Too many investors spend too much of their time searching for ‘hot’ stories and ‘hot’ stocks.

They search the internet using terms such as ‘best sector to buy’, or ‘best stock to buy’, or ‘best resources stock to buy’.

Heck, we know that’s true, because there’s a good chance that’s how you came to be a subscriber to Money Morning. We often publish free reports using those search terms to attract investors.

But once those investors find us, it’s then up to us to do our darnedest to help those investors become better investors.

That often means forgetting about which ‘hot’ stock or which ‘hot’ story to buy. Instead, it means having a gameplan for how you approach your investments.

Do you have an investment gameplan?

Long-time Money Morning readers know (or should know) all about this.

While we publish several investment advisories, that doesn’t mean you have to subscribe to or follow the advice in all of them at the same time. It means figuring out which investment advice and style works best for you.

But having a gameplan doesn’t stop there. Once you’ve decided which of our investment advisories to follow, you then need to understand the investment ‘gameplan’ that the editor or analyst of that service follows.

Jason bangs on about this all the time. He has an overall long term gameplan of how he sees the Aussie and world’s economies shaping up over the coming years.

In some cases, that’s directly at odds with the kind of attitude and view you’d normally expect from a resources analyst.

But that doesn’t worry Jason. Having a gameplan in place means that Jason and his subscribers know (or again, should know) how to play the market. He’s told them for months why he doesn’t like the gold price as a commodity play.

But that hasn’t stopped him tipping tiny Aussie resources stocks which have an exposure to the gold market.

Jason is doing some great work for his subscribers right now. He’s told them all about his investment gameplan, and he’s shown them how to invest within it. Based on the results I’ve seen, he’s doing a pretty darn good job of it too.

Check it out. The resources sector has had a terrible time of it for five years. But the market has turned in recent months. Learn Jason Stevenson’s gameplan for playing the resources market here.

Cheers,
Kris

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Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Fat Tail Investment Research, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


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