It’s no surprise that we’re seeing more sell-offs. Last week, I ended my letter telling readers to “Protect (themselves) from inflating currencies: Buy gold.” Without a doubt, the biggest headline in the investment world this past week was the big gold and silver selloff. So was I wrong? Was telling my readers to buy gold the wrong thing to do?
There’s no doubt that markets will remain fragile. Every ounce of optimism has been retorted with pessimism. Once again we saw how volatile our markets. While it’s easy to find many stocks that are now significantly undervalued, it’s becoming much harder to pull the trigger. Most of the professionals in the industry have already taken an early Christmas holiday. Bid support on less liquid exchanges, such as the TSX Venture, have dwindled dramatically and companies that once traded millions of shares per day are now trading a few thousand here and there.