Great Investment Articles

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Monday, May 22, 2006

 

The 1970's vs. Today

This article by Martin Weiss compares the world situation in the 1970's, when gold went up more than 8-fold in 3 years and 5 months, and compares it to today. After describing 6 parallel patterns, he concludes with the following:


These parallel patterns point to a parallel future.

There will be many differences; history will twist and turn events to surprise us all. But throughout it all, I have little doubt that surging gold, and commodities and interest rates imply some of the greatest opportunities of a generation. That was true in the late 1970s. I believe it’s true again today.

To profit from them, you don’t need a big stake. Nor do you need to catch every up and down move. What you need most is patience.

Although protective measures, like stop-loss orders, are always prudent, don’t run at the drop of the hat. Don’t let your vision be clouded in the shadow of each correction. Stick with your core positions and strategies.

Always remember: It’s not until the Federal Reserve slams the door on easy money that you need to worry about an end to the rise in gold, silver, oil or other natural resources.

At the same time, recognize that these kinds of sweeping upsurges don't come every year or even every decade. It is a once-in-a-generation cycle that you or I are unlikely to ever see again.

So if your aim is large profits, and you have speculative funds available for leveraged investments, it’s now or not at all.

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