Rick Rule: Be a Risk Manager, Not a Reward Chaser

The Gold Report: Rick, you believe the natural resources sector is experiencing a cyclical decline in a secular bull market similar to the 1970s. Is that true for other sectors as well?

Rick Rule: I learned the hard way not to assume that my success in the natural resource business was transferable to other sectors, so I am going to stick with resources.

However, there are parallels with the gold market. In the 1970s, we had a spectacular resource market, in particular for gold. Its price soared from $35/ounce (oz) to $850/oz. By 1975, in the middle of that secular bull market, gold had fallen to $100/oz. Those who sold at the bottom missed an 800% move in six years.

"I own gold the way that I own life, auto or homeowner insurance. I regard it as catastrophe insurance."

It is important to understand that in cyclical markets like resources, declines in secular markets are to be expected. From my point of view, you need to understand cyclical declines for what they aresales.

TGR: Is it fair to think that the prices of natural resources will bounce back as they did in 1970s, when the recession was much shorter and not as global? Continue reading "Rick Rule: Be a Risk Manager, Not a Reward Chaser"

Contest Winners…Trillionaires…and the smartest men in the universe!

Congratulations to our contest winners in their close predictions of the DJI and DX closing positions ending QE2 on June 30th, 2011.

Here is a little bit about our winners:

Andrew G.from PA- Winning guess for the DX: 74.377

We asked Andrew to tell us a little bit about himself and this is what he shared:

“I am a happily married 55 year old. We have two sons, one 24 and the other 22. Both graduated recently from UPenn, My oldest son is a bio-engineer, working at a medical device company, the younger one a Wharton graduate working in the financial field. I consider myself a long time student of the market and primarily, a long term investor. Having said that, over the last few years, I have concentrated my efforts on the charts, and technicals, believing that they play an exponentially larger role in the shorter term direction market. That it why I religiously follow the Market Club. It is one of the best top-grade tools for traders and helps to provide great insight as to where we go from here. It has been a great help with my shorter term trading strategies, as I continue to seek more consistency with both intraday and swing trading.”

Our other winner is:

John Hoffman from FL- Winning guess for the DJI: 12,432.39

Here is what John told us about himself:

“I am semi-retired and up until about two years ago I was helping a friend manage the administrative duties of his hedge fund (now closed). I am currently trading in my own accounts.”

All of us here at MarketClub would like to thank everyone for their participation in this fun-spirited contest…hopefully we can get another one together soon!

Congratulations again John and Andrew, enjoy your new Wi-Fi tablets!

The MarketClub Team

If you "snooze" you lose!

If I wasn’t still getting a steady stream of emails after reminding you of the prediction challenge, I would feel like that pesky alarm that you dread as your morning wake up call. Well consider this your final hit to the “snooze button!” We are embarking on the last week of the contest.

Contest? What contest, you ask? Wipe the sleep from those beautiful eyes of yours, charge that battery, and show everyone that you deserve to be a “trillionaire”, “the smartest man/woman of the universe”…and at the very least, the winner of an Android Tablet!

Email [email protected] to submit your genius predictions for the DJI and DX for the end of QE2.

Still confused? Get caught up here!

Are you the smartest? Prove it!

If you have been following our blog, then you are no stranger to our prediction challenge. If you missed it, you are in big trouble!! Okay, well not really, but we HIGHLY recommend that you get caught up HERE!

Emails have been pouring in with a wide range of predictions for the DJI and DX. It is fun to catch a glimpse of everyone's view of the market. If you have not yet emailed [email protected] with your predictions, do so ASAP...remember, the challenge ends June 1st! Yes, QE2 runs through the end of June, but what fun would it be if we allowed you to guess up to the day before judgment?

Don't miss your chance to win the title of The Smartest Man/Woman of the Universe...Email [email protected] now!

Good Luck,
The MarketClub Team

POLL: Will The End Of QE2 Determine Gold’s Destination?

The second run of quantitative easing is coming to a close and no one can quite agree on how it will effect the market moving forward. Regardless of your opinions on QE and QE2, the government's "easy money" policy has a profound influence on the price of gold, stocks, and the dollar.

Do you think the $100 sell off that occurred in gold this week is a sign of things to come, or will the price move higher by year’s end?

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