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Wednesday, October 28, 2009

OUR CORRECTION PREDICTION FOR RESOURCE STOCKS


Today, we check in again with the Canadian Venture Index to remind readers that, yes, it is still a quiet and steady bull market in small resource companies.

We track small mining and energy companies with the Canadian Venture Index. We consider it the "Dow Industrials of small resource stocks." The Venture has enormous potential to rise in the coming years if folks flee paper money and flock to real assets like oil, gold, silver, and uranium.

We tagged this index as a potential moonshot candidate almost the exact day it bottomed last December... and we've updated you monthly on its progress. This progress has led to a 67% gain so far this year. After such big gains, a trader has to wonder when this bull run will "take a break" and experience a sharp pullback, as all bull markets do.

Our answer: not until it receives a rash of publicity in mainstream newspapers and magazines. Right now, these publications are covering the falling dollar, $8,000 housing credits, and Wall Street pay packages. The bull market in small resource companies just "doesn't sell well" right now. When it does, it will pull the masses in, experience a correction, and – as usual – relieve the public of their capital.

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