What The Contrarian Would Do Right Now:
Contrarians almost always make money because they do exactly the opposite of what the masses are doing.
Let's see what the masses are doing:
"Gold in New York
tumbled the most in three months as plunging energy costs reduced the
appeal of the precious metal as a hedge against inflation. Gold
is down 21 percent from a 26-year high of $732 an ounce on May 12,
partly because the price of oil has dropped 24 percent from a record in
July. Crude oil fell below $60 a barrel to a seven-month low."
"'Everybody is getting out of their positions,'
said Nick Ruggiero, a trader at Eagle Futures. 'Crude came off almost
$3 this week, and gold is following.' Losses accelerated after gold
fell below $600. 'That was a big number,' Ruggiero said. 'We had a lot
of sell stops for long positions.'"
This is usually a good time to buy. The only thing that makes me nervous is it's October. This is historically the most turbulent month of the year.
I am still mostly in cash but I have my finger on the trigger waiting to buy because most share prices have been slashed in half and the psychology can't get much worse and yet the fundamentals are there for another huge rise.