ALTHOUGH I’VE been talking about the bull market in hard assets for the better part of three years, most nonmarket types are just beginning to catch on to the trend. Let’s face it, folks: We live in inflationary times. A hundred bucks ain’t what it used to be.
In recent months, commodities have risen substantially across the board, with everything from silver to soybeans posting dramatic gains. What has received the most attention, for obvious reasons, has been the rise in crude oil. Higher crude means higher gasoline prices at the pump. We’re a nation of drivers. Gasoline is one commodity most of us buy regularly.
Not surprisingly, politicians and journalists have all weighed in on how to deal with the “high” cost of gasoline. Thankfully, they’re not managing your portfolio. Because from a trader’s perspective, thinking of markets as “high” or “low” is a linguistic trap that should be avoided.
As I often point out, a real bull market is built on doubt. And when you get right down to it, nothing is more doubtful than describing a market as being high. There’s a quiet, condescending, passive-aggressiveness about it that seems to suggest that the real move has already been made. After all, if investing is about buying low and selling high, who in their right mind would buy high? (more…)