When it comes to bear markets and surviving correction no other market than the mining sector come to mind. The mining sector particularly Gold and Silver have been in a Bear market for the past 4-5 years since Gold peaked in 2011. If you were apart of Gold huge rally moving up to 2011 when Gold peaked at $1900 and were lucky enough to have sold off in those highs you were one of the few lucky ones.
A lot of investors bought into Gold and Gold and Silver Mining stocks when the price was moving up fast and if they didn't sell they are still likely holding onto their shares of Physical holding at a loss. The Gold Market is very volatile and moves up and down fast. To date this year Gold has performed very well and holding at over 20% but since the big run up from the beginning of the year we have already seen a 20% correction in most Mining Stocks. However with some stocks up 100% this correction still puts you up with some nice gains.
But if you are recovering from the last cycle and still trying to regain your losses from the Bear market that took place many investors might be thinking maybe it's time to cut my loses and take my profits off the Table that I have made over the past 6 months.
Thsi might be very tempting to you. especially if you have been sitting on a lot of RED over the past few years. However i would remind you that this potential New Bull Market in Gold and mining shares that has started this year is just getting started. We have just went through the typical correction that happens after any Bull Market starts, have seen the average 20-25% correction and with the summer behind us I would expect to see the market rebound and shares begin to increase again.
There are so many signs in the market and around the world that are showing that the S&P is due for a reversal, Global Debt is out of Control, the current state of the economy is showing a lot of false flags and we are likely going to begin seeing more QE "Quantitative easing" Negative interest are among us and it just isn't easy to make money in the markets today. These are all good signs for Gold and when Gold goes up, Gold Mining companies, Gold mining shares go up and go up fast.
So, what do you do? do you have what it takes to survive and bear market and a Correction? It definitely is nice to see some Green on the screen and to be able to say you have made a profit after many years of holding loses, But for most investors who get into Mining stocks including myself, we dont get into this sector just to break even. We get into Mining companies during Bear markets to Buy shares at a low price so when the Bull starts to Charge we can sell the shares for big profits! personally i'm holding, I think we have a long way to go.