I have edited out some stuff to highlight the key points, however this is the opinion of a precious metals trader. Seems to be a sensible approach for anyone that believes we might be in the path of a hurricane, however I am not the worrying type so I have underlined the only actions I subscribe too. Kind of like hunkering down at home with the ear buds in. September was a non event IMO and October hopefully will be no different as I feel too many people are talking about it.

Rookie

Larry LaBorde wrote;

I always find myself approaching October with a little trepidation. As soon as all those 3rd quarter earnings (or lack thereof) start coming in we could be in for quite a shock. It just seems that surprises of the worst kind show up in the stock market in Octobers past (especially the most recent one). But what to do about this dread in the pit of my stomach as I get nearer and nearer to turning another page on the calendar – to the dreaded investors month of OCTOBER? Perhaps it is time to take a little defensive action. Here are my simple recommendations:

1. Move up those stop losses. If you do not use stop losses then shame on you. Tighten them up. Maybe as close as 90% to 95% of your stock’s present market value. Sure you might get stopped out on a small dip before a big run up but how many of you are wishing you had done so last October? If the market continues to run up then keep moving the stop loss orders upward. If it drops hard and fast you can thank me later. The market just seems a little toppy to me but what do I know?

2. If you have precious metals in your possession then hold them as a core investment. Right now a 20% to 25% allocation is not too high in my opinion. If you do not have that core investment then now might be the time to buy some and get ready to buy more if there is a short, sharp, quick drop. Decide where you would like to buy in and write it down. Your emotions will get the best of you in a wild ride down. Make a plan and stick to it.

3. Don’t be afraid to lock in profits. If you have a good profit never be afraid to sell a stock and lock in your gains. Maybe sell half and let the other half ride with a stop loss order trailing it closely. Remember that it is not a profit until you sell. Invest for the long term but never marry a position. (You will also need some cash for item #4.)

4. Get ready to buy if the bottom falls out. Look at a few good energy stocks. I like natural gas producers with large reserves. Look at a few mining stocks. There are several good picks out there right now. Maybe even look at a few defense stocks as I smell trade wars on the horizon. See how far they fell last October. Look and see how they recovered. Study their earnings and see what “P” you would be willing to buy at based on their “E” with a realistic P/E ratio. Get those stink bids ready. Remember to have a little speculative investment cash ready to jump in just in case those targets are met. Decide where your buy in price is and write it down. If they are good stocks be bold with a LITTLE speculative capital. Inflation is already baked into the cake in the long run. The new Japanese prime minister is already talking about making the USA borrow in yen instead of USD. If this ever comes to pass then it will be harder for the USA to inflate their way out of this mess. In the short run deflation is still a possibility and a little cash is prudent. HOWEVER, start building your precious metals positions if you have not already done so. This time is a blessing and will not last forever.

Wishing everyone a very dull October,

Larry LaBorde Silver Trading Company