Some Market Wisdom

“What’s the difference between a cookie jar that has a hundred cookies in it and a jar that has one cookie left? There’s no difference. But what happens the next time you want a cookie?”

Markets tend to discount only the immediate future. If something is even 6-12 months away, even if it’s a matter of certainty, markets may still completely ignore it. This is how most money is made by the smart people, while the analysts on CNBC reason “Just look outside and you’ll see there nothing wrong”.

This is what may be happening in the silver and gold markets today, where 90% of all contracts close on paper, wothout any physical metals being traded. When the metal runs out, we’ll see how much it’s really worth.

“Just because you ran through a dynamite factory with a lit torch and lived to tell about it doesn’t prove you’re not an idiot.”

Sensible investing is not just getting away with something but being able to do replicate that strategy time and again safely. There will always be millions to be made on the edge, but it is also there that so many millions are lost.

Although this lesson may have come in handy about 2 years ago, its a constant reminder that we must think strategically, over the long run and big-picture, and not get carried away with one tactic that worked once for one person a long time ago.



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