Why You Need an Investment Game Plan When It Comes to Gold

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Gold. It has been one of the best performing commodities this year.

That and silver.

Yet, one analyst doesn’t like gold…not the commodity price, anyway.

So much so, that he has steadfastly refused to jump on the gold bandwagon. Even as the gold price has taken off, this one analyst has stayed bearish on the metal.

It’s a brave position. But it’s a position he believes in.

It’s safe to say, this one analyst is his own man…

Too many analysts, commentators, and investors try to jump on the latest hot story.

Sometimes it works, other times it doesn’t.

The danger with buying into ‘hot stories’ is that they cool. And boy, can they cool fast.

There isn’t much doubt that gold has been one of the, if not the, hottest stories of this year.

But while buying into ‘hot’ stories can be a great way to speculate and invest if you get in at the right time, most investors don’t get in at the right time.

They get in at the wrong time.

That’s why our resources analyst, Jason Stevenson, has steadfastly refused to follow the crowd.

And as we showed you yesterday, so far at least, it doesn’t appear to have had a negative effect on the returns he’s making for his subscribers.

Bearish doesn’t always mean being bearish

Now, just because Jason has been bearish on gold as a commodity, it doesn’t mean he has been bearish on gold stocks.

In fact, a couple of his current best open positions are in gold stocks.

The point Jason makes to his subscribers is that when you’re investing, you need to have a game plan. That’s important.

And you know what? We agree with him — wholeheartedly.

When it comes to investing, having a game plan is important.

Too many investors spend too much of their time searching for ‘hot’ stories and ‘hot’ stocks.

They search the internet using terms such as ‘best sector to buy’, or ‘best stock to buy’, or ‘best resources stock to buy’.

Heck, we know that’s true, because there’s a good chance that’s how you came to be a subscriber to The Daily Reckoning. We often publish free reports using those search terms to attract investors.

But once those investors find us, it is then up to us to do our darnedest to help those investors become better investors.

That often means forgetting about which ‘hot’ stock or which ‘hot’ story to buy. Instead, it means having a game plan for how you approach your investments.

Do you have an investment game plan?

While we publish several investment advisories, that doesn’t mean you have to subscribe to or follow the advice in all of them at the same time. It means figuring out which investment advice and style works best for you.

But having a game plan doesn’t stop there. Once you’ve decided which of our investment advisories to follow, you then need to understand the investment ‘game plan’ that the editor or analyst of that service follows.

Jason bangs on about this all the time. He has an overall long term game plan of how he sees the Aussie (and global) economy shaping up over the coming years.

In some cases, that’s directly at odds with the kind of attitude and view you’d normally expect from a resources analyst.

But that doesn’t worry Jason. Having a game plan in place means that Jason and his subscribers know (or, again, should know) how to play the market. He’s told them for months why he doesn’t like the gold price as a commodity play.

But that hasn’t stopped him tipping tiny Aussie resources stocks which have an exposure to the gold market.

Jason is doing some great work for his subscribers right now. He’s told them all about his investment game plan, and he’s shown them how to invest within it. Based on the results I’ve seen, he’s doing a pretty darn good job of it too.

Check it out. The resources sector has had a terrible time of it for five years. But the market has turned in recent months. Learn Jason Stevenson’s game plan for playing the resources market here.

Cheers,

Kris Sayce,
Publisher, The Daily Reckoning

Editor’s Note: This article was originally published in Money Morning.

Kris Sayce
Kris Sayce, dubbed the ‘Jeremy Clarkson of Australian finance’, began as a London finance broker specialising in small-cap stock analysis on London’s Alternative Investment Market (AIM). Kris then spent several years at one of Australia's leading wealth management firms. A fully accredited advisor in shares, options, warrants and foreign-exchange investments, Kris was instrumental in helping to establish the Australian version of the Daily Reckoning e-newsletter in 2005. He is currently the Publisher, Investment Director and Editor in Chief of Australia's most outspoken financial news service — Money Morning.
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