So, you see, position sizing will play a major role in 2016. My suggestion is to own gold and silver coins as a physical insurance, with 2%-4% of your net worth. Hold lots of cash to be ready to take advantage of opportunities when stocks get cheaper (and they will), and even hold cash outside the banking system, like in a stash (90 days’ worth of expenses. You never know, right?). Study the mining sector carefully to find the most competent management teams. In mining, people are the key. The product is the same, right? With gold and silver, it’s the people that make the discoveries, attract financing, bring the mine to production, and reinvest the profits. Lastly, if you decide to invest in oil companies, go for the best of the best. Their dividend yields are insanely attractive at the moment, if they can keep paying them and grow them.
So, now do you believe in position sizing?
Until next week,
Take life easy and yourself seriously.