Reply #2: SPECIAL EDITION WRAPUP "Believe It!" by Jim Puplava & Eric King

[ozymandius]

Fundamental Review
by Jim Puplava

An investor would be fortunate enough if he or she were to encounter one or two secular bull markets in their lifetime. Secular bull markets can last a long time and make investors a lot of money. If an investor can get onboard early enough and simply ride the bull, it is one of the few ways that real fortunes can be made.

New bull markets when they begin are seldom recognized. Emerging trends are difficult to discern when they begin because investor attention is still focused on the last trend not recognizing that the rules of the investment game have been altered. Supply and demand fundamentals alter and change investment markets, giving rise to new bull markets and bringing others to a close. The key is to recognize when one trend is coming to a close and another trend has emerged to take its place.

This is one of those times.

Technical Review
by Eric King

About the only time I can remember having a disagreement with Jim Puplava was right before the gold show in San Francisco at the end of last year. Jim was getting cautious on the mining sector and I (being the contrarian that I am) was trying to explain to Jim that everyone everywhere I looked was bearish and selling their gold and silver stocks. Well, the disagreement became quite heated. Jim pulled into his garage and we ended the conversation and that was that. Later on that evening after dinner, Jim called me and we had a much better conversation. I explained to him that there was too much pessimism out there and as far as I was concerned, we were heading much higher.

A few days later when we talked, Jim said he had received a prominent metals newsletter which was very bearish and Jim began to shift over into the bullish camp. The story doesn't end there however as we agreed to go the gold show in San Francisco. For some reason Jim wanted to arrive a day early to see who was there setting up their booths. I reluctantly agreed as we were driving together and he was my ride (beggars can't be choosers). A funny thing happened when we first started to walk around and see who was setting up booths. I overheard a gentleman in front of us say he had just sold all of his gold. I turned to Jim and he couldn't believe it when I shared this information with him. We then bumped into several other bearish industry people. Jim was quickly getting the concept that folks were just plain bearish into the advance of gold and silver and gold and silver stocks.

http://www.financialsense.com/Market/wrapup.htm