EXTRACT -

I do not see mining ‘correcting’ so much that any of these stocks will be cheaper than they were a few months ago. That’s the hard-to-see side of the rebound: amidst all the companies still struggling are a select few for whom the bull market has already begun.
Secondly, if there is another leg down still pending, I do not see that it can be significant compared to the beating already taken and, more importantly, the upside to come. Don’t take it just from me: in a recent article, Brent Cook had this to say:
“The most money I ever made was from the stocks I bought in the bust between 1997 and 2002. It was extremely hard to do because it was scary. I would buy a stock and then it would drop by half again. You are all alone and the market gives you no encouragement at all.”
It is scary, but the contrast that matters is between prices today and prices a few years from today. Since we cannot know for sure about the latter and the former is a scary bear market place, it makes sense that people don’t want to move. But while the difference between buying at $0.25 and $0.40 seems significant today, it will matter much less if the stock rises to $3 or more.
At the end of the day it’s about perspective. Identifying good investments is a time consuming process. Timing is important, but don’t get so stymied by the big picture unknowns that you fail to position.
Because the answers to those unknowns become apparent slowly, gradually, insidiously. Waiting for clarity will mean missing the best seats on the boat.

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