The next five years will be both wonderfully rewarding and terribly treacherous. I think companies' stocks will go up or down 20%–30% over relatively short periods of time for almost no reason. Investors have to be both financially and temperamentally ready to deal with that volatility; if they're ready to deal with such volatility, it becomes a bonus and benefit for them. Goods go on sale more frequently than occasionally.

In my talk at the Casey Conference in early October, I reminded the attendees that the greatest bull market I've ever experienced was the gold bull market from 1971–1981 when gold ran from $35/oz. to $800/oz. Right in the middle of that spectacular bull market, we had a cyclical decline of 50%. The gold price halved from $200/oz. to $100/oz. Some investors got the cycle right and were long gold; but, because they didn't have the courage of their convictions, they still went broke—a true tragedy. Volatility has been a wonderful tool for me over the last 20 years.

TER: S