A good strategy

Posted on February 24, 2006 , filed under Stocks | Print This Post

I believe a solid long term strategy should be followed until the end without change. My portfolio is heavily made up of semiconductor stocks. Recently semiconductor stocks have been acting strangely and have not followed along with the markets recent rally. I will expand with another post about the semiconductor stocks in my portfolio and the rational behind the investment. I believe the current prices of the semiconductor stocks in my portfolio offer a good entry point for new investors to jump in.

At the moment I believe gold is poised to get hot again as worries over terrorism persist. I still expect to see some minor fluctuations before gold really takes off to $600 and above. I expect to see a few rounds of profit taking by institutional investors, unless we see a major global catalyst such as a pandemic or terrorism that will create enough public interest needed by gold bulls to market the metal as a safe haven investment. As with all bull runs we must carefully look at what cycle we are in to predict how global events will affect the psychology of the general public. Gold has seen a steady build up and I believe we are about to exit the second phase of gold’s bull run and enter the third phase that will send gold to amazing new heights. My prediction of Gold passing $500 last year was the first key psychological event to push gold in the eyes of mainstream investors. I believe now that gold is carefully being watched, the gold bulls are waiting for an opportunity to create the herd mentality that will drive individual investors to look at gold as an alternative currency investment or appreciable long term asset. I intend to invest in gold mining stocks again, if the metal drops below $530.

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