Sentiment plays an important role in bull markets.
There is an old adage that a bull market climbs a wall of worry.
This means that the press or investment industry will talk negatively despite the fact that a market, sector or stock is climbing in price.
Get David Skarica's Gold Stock Adviser — Click Here Now!
The idea behind this psychological concept is that the negative news keeps buyers away. Remember, as long as there are buyers out there, it will push up the price of a stock, commodity or a market.
Therefore — perversely — you want to hear a lot of negative sentiment. Such talk is great because it keeps buyers at bay and pushes potential buying off until later.
However, when everyone is positive and has bought shares, for example, there is nowhere for a stock to go but down.
During the most recent rally, we saw many so-called experts come in and short gold. These are individuals who have never owned gold and haven’t participated in the gold bull market at all.
They don’t understand the gold bull market. However, when I saw these individuals short, it made me very positive.
Because when gold rallied again, they would have to cover. So on top of buying, we would have these individuals’ short-covering push the price higher.
I don’t see how you can think gold is a bubble at these levels.
Governments are printing money to buy bonds. There are huge deficits and imbalances all over the globe. All of this is bullish for gold.
Don’t listen to the naysayers who haven’t owned an ounce of gold in the entire bull market.
Gold will continue to climb the wall of worry higher.
About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here
to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now
© 2023 Newsmax Finance. All rights reserved.