Patience is … Profitable

It is my observation (and that of others), that patience in the current market (most ANY market …real estate, stocks, gold, etc) is not only a virtue but profitable as well.  This market is a bear (literally and figuratively) in testing one’s patience.

It has been killing me to hold on to the junior mining company stocks that I own.  They were hurting even before this lastest calamity (they have barely budged on mining stock upticks resulting from the recent jump up in gold and silver).  Selling them now is just stupid.  They are a small part of my portfolio but still, I operate on a percentage metric for ‘how I am doing’ and 76% down (in the case of Eastern Platinum) is pretty hard to look at everyday.

Looking at the real estate prices I am seeing now and not buying anything is especially difficult.  I know that some of what I am seeing may be up 25-40% in 3 years.  BUT … it is likely to go lower in the near term.  Keep your power dry …cash is KING.

Just like real estate, there are many things on sale in the stock market.  But just as I don’t want to sell my junior miners, I am reluctant to buy much of anything because the economy IS doing poorly and I think the major indexes and overall market have some ways to go .. down.  Think how happy all those Kuwaitis are that bought into Citibank 35% ago.

Profits and patience are tied at the hip right now.  Hang in there.