Warren Buffett Bookends the Gold Stock Correction
Where once many months ago Mr. Buffett’s entry into the ignominy of the gold stock realm was trumpeted by the gold touts with chests a thumping and bull horns a blaring, today to the sound of crickets and imploding senior gold miner charts Mr. Buffett is shown to have left the sector behind.
Thanks to subscriber ‘MS’ for sending this link along…
Warren Buffett Buys Telecom, Drugmaker Stocks; Apple Stake Cut
Berkshire Hathaway’s sell-outs included Barrick Gold, which was the center of the tout last August per the first link above. Notice anything here? Like the high in August and today’s low? The fallout is still in progress.
Consider these the bookend sentiment events, one in and around the beginning of the sector’s correction and its bookend in and around its ending stages.
The refrain is as it has been seemingly forever. You never ever get in line in a committed way * behind a gold perma bug with a million followers (i.e. lemmings) while he or she is either admonishing, lecturing or titillating the masses with crap like “Buffett buys a gold stock”. Never ever ever. Don’t do that. Okay?
I don’t write these anti-bug posts for the fun of it. Getting contempt from some people is not fun. I write these posts because it’s a tried and true phenomenon on the precious metals and there are people out there who maybe have not yet been burnished by how it goes in this gawd forsaken area of the market.
* I mean, trade as you will. But the touts should be rejected or as in this case, used for what they are. That would be wonderful contrary indicators.
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