Hello to Copiers and Followers,
After a blistering run in gold mining stocks and Chinese equities, there's every reason to suspect this current pullback is nearing its end—much like the temporary breaths taken by marathon runners before the final sprint. If we look back at other high-flyers that have delivered monster gains, take Nvidia or Microsoft as prime examples: during their multi-year climbs, they've endured several gut-wrenching pullbacks of 20-30% (or even more), only to roar back higher with renewed vigor. Nvidia, for instance, shed nearly 30% in late 2022 amid the broader tech rout, yet it catapulted over 200% in the following year. Microsoft pulled back around 25% in early 2022 before resuming its ascent. These aren't anomalies; they're the rhythm of bull markets, as the legendary trader George Soros astutely observed: "Markets proceed in a wavelike fashion," with advances punctuated by retreats that shake out the weak hands and reload the cannons for the next leg up.
Given that the primary uptrend across all stocks in the portfolio remains firmly intact—bolstered by supportive macro tailwinds like easing inflation pressures and geopolitical shifts favoring safe-haven assets and undervalued emerging markets—logic, history, and even basic math scream opportunity in these dips. Buying on weakness in leading sectors has been a proven playbook for generations of investors. Consider the arithmetic: If you scoop up a stock at a 25% discount from its recent peak and it simply recovers to that prior high, you've just locked in a 33% gain from your entry point (not too shabby). But here's the real kicker—when it breaks out anew, that momentum often propels it 25% or more beyond the old high, turning your initial 33% rebound into a swift 60%+ windfall from the dip low. Stack a few of these moves in a portfolio of outperformers, and those quick 50% portfolio pops become not just achievable, but almost routine for patient dip-buyers.
In my view, gold and Chinese stocks are still in the very early innings of what could be decade-defining bull markets. Gold miners, trading at historically depressed valuations relative to the underlying metal's surge, remain woefully underowned by institutions—less than 5% allocation in most major funds, per recent filings—leaving ample room for a classic "crowd chase" higher. Chinese equities, battered by regulatory headwinds and growth fears, are flashing similar undervaluation signals: P/E ratios hovering near decade lows, with foreign ownership at just 3-4% of market cap. This combination of technical resilience (higher lows in key indices) and fundamental underappreciation makes price dips here less a risk and more a gift. We're talking potential multi-baggers for those who zig while others zag.
So, as we eye the close of this pullback, I'd urge leaning in: scale into those leading names on any further weakness, and position for the wave that's building. The market's wavelike nature rewards the bold.
Regards,
Jim
$BABA (Alibaba-ADR)$SILVER$GOLD... Show More
Corrections are the best opportunities for a better entry point, in a long term view. Great words Jim, those swings are possible with the correct strategy!... Show More
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Tue Dec 09 2025 00:41:52 GMT+0000 (Coordinated Universal Time)
