My Shopping List

By Jennifer Bawden
September 5, 2008
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In a rush to deleverage before the mass panic set in, I sold my South Florida apartment and raced to Southern Spain to sell my property there. A New Yorker with limited driving experience, my 23-year-old assistant had to accompany me. As we drove home from Marbella, I stated that buying a house in Spain was singularly the biggest mistake of my life. For good measure, I added that God throws the good and bad at us simultaneously.

She replied “Everything that happens in life is a result of a series of good or bad decisions you have made.” Every decision has positive and negative consequences that bring you to where you are in life.”

This fast-forwarded me to my current decision to load up on gold mining stocks. Or rather leg in much lower to offset losses on others I chose to hold long term.

I have been waiting for my own version of triple witching; the day when cyclical forces push gold down for the summer, the dollar has a bounce and the market has the large September/ October correction I expect. My shopping list has been scrutinized and I’m ready to pounce!

Gold mining stocks have gotten pummeled each market sell off as the baby has been thrown out with the bath water. Many of the names on my shopping list are selling below their 5-year lows!

China, India and emerging market investments have done well but, as the US economy plunges, so will the markets in all these countries. Even Canada, rich with resources, follows us down when we dip. If you are in cash you will be able to grab some great buys after markets have been beaten down.

As the dollar rebounds and gold gets pushed down by very nervous central bankers, we will have our chance. I suggest holding on to the reins and waiting for the inevitable big washout this fall to get unbelievable deals in Goldcorp, Kinross and Yamana, to name a few.

So, I sit and wait patiently with my shopping list of Canadian Gold Mining Companies. Be ready with your own shopping list when the market crashes. I suggest ETFs over Mutual Funds, as they are much cheaper and easier to get in and out of.

A crashing market will pull most stocks down. The markets are accelerating. Things happen world wide now at lightening speed. My strategy will be to buy mining companies on the dips.

There is always a bull market somewhere and when the great inflation of the US currency resumes, I will be ready.

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