Conspiracies and bias hurt investors. It’s no wonder so many people have been unable to attain proper market positioning in 2020. You invest with your heart, soul, fears, or even sometimes your intellect and you risk blowing yourself up at worst, or missing out at best. For much of 2020 Twitter has been a forum for ‘influencers’ with tens of thousands of followers spewing dogma and influencing their herds alright. I watched it happen all year, in the Twitter machine and at other venues.
You know the perma-bearish or ‘got gold?’ types, issuing dire warnings and authoritative discussion of just how bad off the world is (well, it ain’t good, I grant them that). But it’s the practical reaction or lack thereof, not the news itself that matters.
So Warren Buffett bought a gold stock. The gold “community” immediately seized upon it as validation and an opportunity to lecture the herds. What it actually was though, was a top prior to a healthy and much-needed correction (handily, right from our long-standing target of HUI 375).