Friday, May 15, 2009

Money Magazine - Good Contrary Indicator?

In my two decades plus experience in the investment business, I have found one thing which is usually true. What is true is that the conventional wisdom is always wrong! Where can one find the conventional financial wisdom?

Money Magazine is a good place to look. They are still firm believers in the cult of equities. I guess they've not noticed the equity bear market that has wiped out a decade's worth of gains.

One asset that I do like for the long term is gold. I have been worried about gold because I noticed that some media outlets were actually talking about gold. But there is no need to worry! In last month's issue - Money Magazine's so-called investment survival guide - they once again kowtowed to Wall Street and trashed gold. Hooray!

There were quotes from several financial advisors/planners who totally trashed gold. Great! One thing I could never figure out about these mainstream media types - why are you asking a "stock" person about commodities? That would be like asking a person who trades copper futures for a living about what they thought about the latest earnings from Apple. It makes no sense.

I am happy to be in a position that is contrary to Money Magazine and in agreement with smart investors such as: John Paulson, David Einhorn, John Burbank, Kyle Bass, Marc Faber and Jim Rogers. I won't be worried until Money Magazine "recommends" gold.

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