So after waking up today, I went to check my joint account and almost spat out my coffee. My wife (she's a trader) put a large portion of my savings in some of the worst performing mining companies since the bear market started. I looked at a few, terrible fundamentals, almost no operating margin, huge losses in terms of free cash flow, the only thing they had was production but was barely staying afloat. When I asked her why she made the trades, she just shrugged and said "Well, I had a hunch they would go up!" Long story short I was pretty close to getting into a rage, but then I thought about it for a sec: Rare metals have been going up for quite some time, and when prices are high, even the worst performing mining companies will be able to turn a profit, and when they do, the intrinsic bankruptcy/underperform discount assigned to them will be erased, leading to significant share appreciation. Moreover, inflation will likely kick in as everyone is staying at home (and not being as productive as before) while massive fiscal stimulus is being injected. I do have faith that since the times of ancient Babylon, rare metals have been a safe haven asset when inflation kicked in, and companies who make them might save my behind this time. I've decided to leave them be until the misses takes it off.
Buy her some flowers and tell her you love her more than all the gold, silver, and diamonds in the world. I think it's a good bet. She's bottom-feeding mining companies. After the mortgage crisis, gold shot up to almost 2000 in the following months/years--I could easily see it going to 2500 or even 3000 after all this s#it. Also, my banker friend also told me not to buy metal commodities, but buy mining companies, because they pay a dividend. She's smart, and going to double your savings.
1) This is a fanfic/trolling/BS thread. You're bored and broke. 2) I'll humor you and ask whether burning 60% of her net liq in mining stocks was a good idea? I mean, it's got upside, right? It's not a loss until you take it! 3) You're going to "leave them be until she covers" ...then what? You really didn't think this through, did you?
%% I read a MARCH 5 IBD/investors.com article on gold stocks/ETFs. Most likely her ''hunch'' is right, but not a prediction. Also you may want politely ask about a selling plan, some double, triple, quadruple...…………. I owned a gold mutual fund when banks paid you 5%; gold stocks tended to do better than banks 5%. Fundamentals may or may not matter, to many investors/traders. Some of the gold stock annual reports are a fun read+ good pics[MY birds love golden sunflower seeds= a good sign , maybe]