Musings on Investing

The Bear Market is the Best Place to be in

Amarillo Gold (AGC), Altus Strategies (ALTS), etc.

The growth of China is the key to the future of resources. Linked is my discussion with Cory Fleck about China’s consumption of commodities and the current situation of the mining sector.

In the bull market, every stock tends to go up irrespective of its value. But if a stock is over-priced compared to its value, an investor by definition takes a position in which his risk-reward profile is unfavorable. A wise investor is mostly in cash much before the party is over.

Isn’t it worth staying invested when the euphoria is likely to keep the market from falling? Alas, there is really no way to know—except in hindsight—when the party will end.

In the bear market, however, one has a much higher possibility of finding value at a price that offers an investor a decent upside with a favorable risk-reward profile. Of course, there is no way of knowing when the market will stop falling. But value eventually—sooner rather than later—gets recognized.

On investments…

Here are some companies that in my view have a good upside:

  • ValGold (VAL; C$0.11)
  • Amarillo Gold (AGC; C$0.25)
  • Altus Strategies (ALTS; C$0.10)
  • Thunderstruck Resources (AWE; C$0.06)
  • Keras Resources (LON:KRS; £0.0035)

On other matters:

I quite enjoyed a book, “The Tesla Revolution,” by Willem Middlekoop. The book gives a good, concise history of non-renewal energy sources, but for me the most interesting part was their take on how sun and wind are becoming key and dominant parts of the energy equation.

Finally, have you registered for Capitalism & Morality?

Warm regards,

Jayant Bhandari


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