1. Investing in a bull market
can generate extraordinary returns. Even without any selection, simply
investing early in the indices that are within a bull market will grow one's
money by several fold. Careful selection of equities and the best performing
commodities will lead to legendary returns that are beyond the imaginations of many.
2. A secular bull market typically lasts longer than 10 years. Most bull
markets last between 15-20 years. If the current bull market in the resource
sector is no exception, which we fully believe, it will last at least
another 5 years and most likely another 10+ years as this one is only about
5-7 years old.
3. Investment returns from the first half of most secular bull markets
are only a fraction of the returns experienced during the second half of the bull
markets. This, together with point #2 above, suggests that the bulk of
the gains from the current resource bull market has yet to come.
4. Although the overall trend for all secular bull markets is up, no two bull
markets look exactly alike in their ascendance to the peak. Corrections are unpredictable
and sharp. It is difficult, if not impossible, to time bottoms and tops of
each leg of advances/declines in the entire bull market. Therefore, the surest and
best strategy for most investors in a secular bull market is to buy the
dips and hold most positions until the bull market runs its course.
5. The current bull market in the resource sector has most likely run
only 1/3 of its course. Compared with the last three resource bull markets
and the last three general equity bull markets since 1900, the current resource
bull market has appreciated more than any other bull market in the first
1/3 of its course.
Fundamentally, the current resource bull market has
stronger driving forces than the other bull markets in the past. Therefore,
we predict that the current resource bull market will be the most spectacular
bull market of all. It's still early in the game. Prudently invest your
money now and you can make life-changing returns over the next 5-10 years.
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