Few know that Albert Einstein invested much of his 1921 Nobel Prize money in stock markets. However, he lost a bulk of it in the stock market crash in 1929. Pity that he could not lay his hands on Benjamin Graham’s Security Analysis that was first published only in 1934.
Why couldn’t possibly the smartest man not make money but even lose it? What was lost on Einstein is not a secret formula to help find cheap stocks. But the behavioral trait to buy only when others are fearful.
….read the rest HERE
Ed Note: If fear ruled investors as they were afraid to buy Gold at $104 in 1976 or $250 in 1999 are they still fearful with Gold at $1,650? That question was answered by one of Michael’s avorite analysts in the Free Over My Shoulder yesterday.
“The simple fact is gold has rallied for 13 years. The Goldbugs have sold gold to just about everyone who would listen.”
“France has shut down the gold market prohibiting the purchase of gold for cash. Governments NEED money and they will be very nasty before this whole thing collapses”
“Markets decline when everyone is long. They start to sell and there is no bid. You simply run out of energy to keep moving in the same direction” “Gold remains vulnerable to a collapse. A monthly closing beneath 1532 will signal that a drop to the mid-1100 zone is likely” – Martin Armstrong
“I have often said that Martin Armstrong is the most interesting economist I have ever met. His methodology has produced some of the most astoundingly accurate predictions on record including the fall of the Berlin Wall, the exact date of the peak in the Nikkei Index and crash of October 19, 1987 and its subsequent recovery. The list is a lot longer but you get an idea why I read Marty every chance I get. I thought his latest piece is important to read to counter balance the constant bullishness we hear. The key is to understand that a break of the current lows of $1626 in gold is needed to trigger the next downside boundaries of the lows formed in April of 2012 at the $1529 to $1532 level. Keep in mind that Marty’s negative projection is ONLY triggered if gold finishes a month below $1532″ – Michael Campbell
Click HERE or on the chart for a much much larger chart.
Martin does not think Gold is in a Bubble like it was at $850 in 1980. In Mike’s Over My Shoulder article he thinks after a correction it will go higher yet.