Erik Wetterling – Why Most Investors Don’t Make Money In Speculative Sectors Like Junior Mining Stocks
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us for a discussion on how he handles the extreme swings in market sentiment when investing in junior gold and silver mining stocks. He outlines a number of bifurcation with investor belief systems or areas where they think they intellectually know something and take actions in contrast to those in actual practice.
Erik points out a number of reasons that investors fail to make money investing in any speculative sector, not just in the precious metals space. In reality, most investors buy during extreme periods of strength into peaks, and sell during oversold corrective moves into bottoms, due to emotions and sentiment, or doubting or misinterpreting the data and trends unfolding. These same retail investors then place the blame on the companies, or sectors, or other people, instead of their own personal choices on when to buy and when to sell and at what price levels.
Another topic Erik brings up in such a volatile sector involves ways of stacking the odds in ones favor and managing the inherent risks to any company in the mining sector by utilizing diversification and seeking an underlying margin of safety in assets that underpin some inherent value.
Erik goes on to discuss a few different stocks he’s sees interesting risk/reward scenarios in such as Dolly Varden Silver (DV), I-80 Gold Corp (IAU), Goliath Resources (GOT), and Snowline Gold (SGD), all of which are stocks he holds positions in at the time of this recording, and he is sponsored by both Dolly Varden and Goliath Resources.*
*Shad also has a position in both Dolly Varden and I-80 Gold Corp at the time of this recording.
This is not investment advice, and merely us sharing our opinions and what we are doing in our own portfolios. People should seek the advice of an investment professional when making important financial decisions and take full responsibility for their own actions.