I have found over the span of my 45-year business career that very few axioms remain unchanged over time. What may have been considered as undeniable truths in one decade are often seen as pure folly in the next.
One axiom that does not change, however, is that the future is unknowable. No one can predict the future.
This reality places everyone in a difficult position. If we cannot predict the future, how can we possibly know how to best position our investment portfolios in order to get us through an uncertain future?
The only way I know how to achieve this aim is by acquiring what we determine to be undervalued assets and hold them until they become overvalued. They should then be sold, with the proceeds being placed in assets that at that time are undervalued.
Note that I am speaking here about value. I mentioned nothing about price. These two words are not interchangeable, but are often misused that way and are therefore frequently misunderstood.
An asset can appear overpriced while actually being good value if the currency being used to establish the price is itself losing purchasing power and overvalued. To restate this point another way…
Read the complete article at GoldMoney here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.