With so much information thrown around there, and people with a variety of agendas and reasons for promotiing them, it’s hard to nail down solid, usable information that can help us build our wealth.
There is one thing study and study shows though, and that is – regardless of the investment vehicle or sector – investors in it for the long haul do far better than those trying to time the market and make a quick killing; or others that move in and out of the market on the smallest snippet of rumor they think is news, hoping to gain an advantage that way.
It really is folly to follow that practice, and even those that manage to hold on to their money don’t build their wealth like those long-term investors do.
Of course this assumes the long term investor has done their research and homework, and understand the way things are trending.
This is the same with those who trade in commodities. As one of most knowledgeable men in commodities, Jim Rogers says about market timing, he’s the worst one at it, and he doesn’t think that way. He’s in it for the rest of his life, and when he invests in commodities he’s thinking in terms of a decade or more, not a short period of time.
What this does is discipline a commodities trader to not follow the whims and short-term swings that happen in all market sectors, but especially in commodities.
There seem to be more rumors and gossip pertaining to commodities than any other sector. Most of it is false, and very little of it true. But even when the news and information is true, you hear so many people with differing viewpoints talking about it, that it’s more confusing when you’re done listening than when you started.
When you’re in it for the long haul none of this matters, as the short term swings won’t have an impact upon you, and only those ruled by the herd mentality following every wind of information will attempt to make a little profit on it. Most of them fail.
Anyway, the point is to have a long term investing horizon, do your research thoroughly, and with the best information available make your decisions.
