[youtube:http://www.youtube.com/watch?v=2m2FIQzal9U&feature=related]

________________________________________

The knock-out makes the fighter a star, but there’s a lot of steps leading up to the fatal punch, that money maker.   It all starts with foot-work.  Ali had the greatest footwork this side of Sugar Ray Robinson, and he defined footwork as a defensive weapon in the famous rope-a-dope strategy, that combined an amorphous passive-aggressive upper body roll with a sly shuffle-dance against the ropes that literally sucked the power from the brutish giant, George Foreman, on that signature humid night in Zaire.

I advocate a similar strategy to assist in absorbing the brutal retaliatory flurries that will inevitably arise from this tidal bull we presently enjoy.  Roll with the punches.  Bleed some shares if you must — 10%, maybe even 20%.    I would not go beyond 30% at this juncture, however.   Keeping cash on hand is one thing, keeping too much of the nasty stuff and missing the rocket launch that is coming is another.

I hope this post will be timely, if in fact today’s hesitation leads to something more stomach churning.  Most important is that you do not lose your focus while the roller coaster whips you about.  

In the end, you must ask yourself the rational question:  Has any single component or fact set changed in the paper money destruction thesis?   If not, you must carry on to the predictable end.

Hint — We’re not there yet. 

EXK, SLW, PAAS, MVG on silver.   IAG and ANV and RGLD on gold.  AAU and NGD and PGZ are for your higher risk plays.  All of these on the expected dips in the next few days.

Pax.

__________________________________________

Comments »