The purpose of this site, the contrarian investing guide, is to help you become a better investor. You will learn strategies and concepts that will put you ahead of the crowd. The aim is to help you reach your financial goals so you can achieve financial abundance all while having fun!
Investing does not have to be hard. You will achieve better results by thinking outside the box and applying alternative ideas and concepts to investing. It will take time, but this site can certainly help you get there, and the vast majority of resources here are free.
This site will help you make conscious decisions in your journey to successful investing. You will learn simple and practical investing strategies practiced by some of the most successful people on Wall Street. I will show you alternative investing ideas you may not have thought of before. The ideas and strategies are based on common sense and are not difficult to learn.
Investing requires hard work. It takes time, consistency, and patience. If you are only here for a quick fix or a hot stock tip that will solve all your financial needs, this isn’t the right place for you. This site is designed for people who are interested to learning investing and improve their longer term investing results.
This site, the contrarian invest guide is contrarian in the sense that many views, ideas and concept often run counter to the mainstream financial wisdom. It is contrary because you do not make money in the market by following the crowd. The way to make money is to lead the crowd. All that is required is an open mind and some common sense.
I created this site to share my experience about investing. A subject I am deeply passionate about! I will use the contrarian investing guide as my tool to share my success, failures, and knowledge with you. You can learn from my and others experience instead of learning from trial and error yourself.
Five Simple Steps for Setting up a Gold IRA
BY: Robert Hallberg
Topics: Gold IRA
Many good folks may not be aware that you can setup a gold IRA and allocate your retirement money in physical gold and silver. Gold and silver has outperformed almost any traditional investment over the past decade by leaps and bounds, but getting a gold IRA is more than just looking for a superior investment return. A gold IRA is about protecting your hard earned retirement money from devaluation, loss and theft.
Although, it is possible to put physical gold in your retirement account most custodians do not allow customers this option for the simple reason that gold and silver are static assets that cannot be traded for commissions. However, this can be circumvented by setting up a self directed Gold IRA. Don’t be surprised if your current custodian do not want you to know this.
Getting started with your gold IRA Account – 5 Simple steps
Silver had two phenomenal years in 2009 and 2010, gaining more than 130%, but last year it closed the year in the red despite a strong rally earlier in the year. It appeared that silver had gone up too quickly and the bulls had become too bullish in too short of a time span.
Silver is currently trading at the $30 level and investor sentiment is down from last year which is common after a correction. So is silver a buying opportunity now?
We have seen a long trend of dollar depreciation but the US dollar has recently been hitting a 52 week high and outperformed most other currencies. Does this mean that the financial problems in the US have been solved and a new trend towards a stronger dollar is emerging?
Hardly! With all the problems going on in the world the US dollar just look like the “least ugly” currency at the moment. We will see continued dollar depreciation over time, but there is no immediate risk of collapse as there may be in Europe. The chart below shows the broad dollar index which has been rallying since the middle of last year.
Gold was up for the 11th year in a row last year and silver finished slightly lower. Despite a run up in prices earlier in the year the performance of gold and silver was below its 10 year average and many investors was disappointed on how it finished the year.
The chart shows the performance of gold and silver since the beginning of the bull market in year 2000. Silver has outperformed gold by a thin margin but gold has been more stable, posing a positive return year after year.
2011 was an interesting year for investors. Gold was up for the 11th year in a row and silver finished slightly lower. The Precious metals were soaring early in the year but they ended the year without any noteworthy gains. Gold finished the year with a 12.5% return, silver was down 4.8%, while the equity markets in the US closed flat for the year.
The correction in the metals towards the end of the year were largely a result of the ongoing sovereign debt crisis playing out in Europe, and investors were dumping any so called “risky assets” and swarmed into cash and US treasuries. As a result US treasuries were among one of the best performing assets in 2011. But given the weak fundamentals for the dollar and US government bonds I don’t suspect this asset class will continue to outperform. Below is a table of the performance of difference asset classes over the past three years.
The world economy has remained weak ever since the recession / depression that began in 2008. Only through massive quantitative easing and stimulus programs worldwide have we been able to manufacture an artificial recovery. But the economy has once again started to slowdown and there is talk about another recession.
It is virtually a certainty that we will get another recession but the question is when and how big will it be this time? Rescissions are actually quite common and we have had 20 recessions over the last 100 years, which comes out to about one every four years on average. The chart shows the time period and the length of all previous recession since year 1910.
Gold and silver mining shares offer leverage and should in theory outperform the physical metal in a bull market. Or at least that is commonly held belief among many precious metal investors. But according to historical data this is no always the case.
Although gold and silver mining shares have outperformed general equities in this bull market, they have not always outperformed gold and silver. While some gold and silver mining shares have had phenomenal returns others have lagged behind, and only investors who had the foresight to pick the winners were able to profit.
We have been in a decade long gold bull market with steadily rising prices. The price of gold has already gone up by more than 6 times, and a lot of investors seem to be asking how much further it still has to rise or if it has already reached a top. The recent drop in the price of gold has gotten a lot of investors worried.
Nearly all bull and bear markets have three distinct phases, and if you learn to recognize them you will significantly increase your chances of getting in while the market still has room to go up, and getting out before the bull market is over and people start to sell en masse.
Have you ever thought about when to get in to an investment and when to get out? Nearly all bull and bear markets have three distinct phases, and if you learn to recognize them you will significantly increase your chances of getting in while the market still has room to go up, and getting out before the bull market is over and people start to sell en masse.
Bull and bear markets almost always repeat in a similar pattern and people’s behavior is all too predictable. A new bull market typically starts with a gradual rise in prices of an investment class that no one has wanted to own for a long time, and consequently the price is very low. Then it slowly starts going up, but peoples attitude still remain negative. After a lengthy bull market with steadily increasing prices, people start noticing the new asset and it gets more and more media coverage. The institutional players buy into this new market and prices continues to rise. Finally, after the price has gone up many times over the public wants in on the price action. The price keeps rising faster and faster and a sense of euphoria starts to set in among investors. Then shortly thereafter, the price starts to fall, and people realize some time later that they bought near the peak of the market and it is now well on the way down.
Gold has been in a decade long up trending bull market and there are some interesting facts about gold investors should be aware of to avoid being shaken out of the bull market on a down day. Understanding the gold’s fundament strengths will give you the conviction of knowing when to buy and when to sell.
Gold has unique characteristics that make it suitable for money, and for the last 5,000 years it has been used for exactly that purpose. It is seen as a safe haven throughout the world, with the exception for a few Keynesian economists, and during times of distress, whether its inflation, deep deflation, war, or economic uncertainty people have always preferred gold.
Here are the main themes on the contrarian investing guide… (More coming…)
Contrarian InvestingLearn contrarian investing! To do better than average you must do something different than that of the average investor.
Commodity InvestingCommodity investing offer extraordinary opportunities during commodity bull market cycles. Commodities are an essential part of the economy and diversified portfolio must include commodities.
Investing BasicsThe investing basics page offers the first step towards successful investing. Learn to invest in stocks, bonds and commodities…
Market CyclesAll assets move in market cycles. Investors with understandings of market cycles can take advantage of the wealth transfers that occur between two cycles.
Investing StrategiesLearn simple and practical investing strategies practiced by pros on Wall Street.
ArticlesThis archive lists articles that I have published on this site and other investment sites. The articles are sorted by date.
Options StrategiesOptions strategies are among the most intriguing tools available. You can use options to be highly speculative or very conservative, or even personalize a plan of anywhere in between.
Gold InvestingGold Investing has been very profitable during uncertain times. Gold is a hedge against inflation, unsound political policies and deficits. Find facts and information about gold investing...
Books on InvestingThe following books on investing, trading and economics are written by some of the brightest people in the industry and may prove to help you in your investment career.
Technical AnalysisTechnical analysis is one of the oldest market disciplines. It is widely used by traders for navigating through the markets and help to make buy and sell decisions.
Products and ServicesA list of recommended products and services I have found especially helpful on improving my investment performance.
Investment NewsFind alternative investment news and find out what is really going on in the financial world.
Investment BlogThis investment blog contains a wide variety of investment advice, facts, and figures that are made to help you make better decisions and improve returns.
