from Outsider Club:
Here is a little pro tip that applies to every aspect of life.
Never stop reading. Ever.
I know, broad and vague, but this week I want to use a quote from an otherwise useless article to keep you filled in on rumblings about silver that are coalescing into a much larger story.
It should come as no surprise that people involved in finance are utterly hopeless news junkies. Half of our job is to constantly read, and we’re always taking that portion of work home.
We’ll read just about anything to find that one nugget of information that is worth remembering.
If you’ve ever perversely looked forward to wading into quarterly earnings, 10-K forms, and NI 43-101 reports, you’re on the same page.
Last week, this constant reading strayed into an area normally bereft of any benefit. Yet there was a gem in Bloomberg‘s “Fourteen Wall Street Veterans Share the Best Advice They’ve Ever Received” article.
It was vague and probably disingenuous, but it did have this little gem that nailed the essence of breaking away from the herd and carving your own path to profit.
This is from David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates.
“Best pieces of advice I have ever received were from Bob Farrell: “When all the experts and forecasts agree, something else is going to happen” and from Don Cox: “Short the story on page A1 and go long the story on page C16 on its way to page A1.”
Both of these legends were mentors of mine. And what this sage advice speaks to is of the necessity and discipline of leaning against the herd mentality and, no matter good or bad the news may be, assessing at all times the extent to which such news is already being discounted by the markets—in other words, how much is “in the price.”
Turn To C16
The most important line in there is the one from Don Cox — “Short the story on page A1 and go long the story on page C16 on its way to page A1.”
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