Investments
Monday, March 11, 2013 at 3:00AM 
At the Cambridge House Investment conference there was an emphasis on Jr. Mining stocks. This was only natural, as their presence at the conference was paying the bills. I found the individual stories fascinating. But if I wanted to invest I would have to really study mining, engineering, and the geopolitics of the country where the mine was. Another option would be to follow an expert in these matters and buy his advice.
But then I heard one presentation that eliminated any thought of such "investment." He said that if you invested in ten penny stocks you could expect to lose money on 9 out of 10 stocks, but hopefully make enough on that tenth stock to make it worthwhile. That does not fit my definition of investment.
Nothing wrong with a little speculation. It serves a useful societal purpose by keeping prices from dropping too low or too high. But when government becomes the speculator to the point of becoming a market manipulator, we begin to have problems, big problems.
How then should a person invest? I will discuss this tomorrow. But in the meantime here is a video that discusses the various types of governmental interference and manipulation.
Reader Comments (2)
The penny stock market is generally , and overall, a den of thieves, and full of fraud and deceit.
STAY OUT!
The spreads are also enormous on the buy/sell spread.
In fact, stay away from individual stocks at any level, and if you must have this asset class, use broad based
index funds.
Eddie H. Nessul
Amboy, CA
I will be talking about index funds on Friday.