The concept of “carpe diem” has been popularized through the ages, with Roman poet Horace famously proclaiming, “Carpe diem quam minimum credula postero” in 23 BC.
This phrase is commonly interpreted as “Seize the day, put very little trust in tomorrow.” However, its meaning can often be misinterpreted. Is it an encouragement to skip responsibilities and live without concern for the future?
At first glance, it might seem that way. Yet, Horace likely intended to convey a deeper message: the uncertainty of the future should motivate us to act today to prepare for what lies ahead. In essence, he was advocating for a proactive approach to life’s unpredictability.
Horace may also have been hinting at the necessity of preparing for a future that may differ significantly from our present. After all, the only certainties in life are death, taxes, and the inevitability of change.
Change can often be subtle, but at times, it is dramatic and life-altering. Consider the world before and after significant events like 9/11 or the assassination of Franz Ferdinand.
While the future may currently seem promising, it always carries shadows just beyond the horizon. Letting opportunities slip away today can lead to regrettable consequences tomorrow.
Eager to Play the Greater Fool
One effective way to seize the day is by identifying opportunities that others have failed to recognize. This approach requires patience, a contrarian mindset, and the courage to act decisively—a rare combination among most individuals.
The majority prefer to follow the crowd. They tend to invest in well-known companies like Amazon rather than take risks on lesser-liked or undervalued assets. However, purchasing Amazon shares at $400, a price accompanied by a staggering price-to-earnings ratio of 1,447 and no dividend payout, is akin to playing the role of the greater fool.
Investors often flock to stocks as they reach new highs. Ironically, the best time to invest is when prices hit rock bottom, such as during bear markets. Yet, during downturns—like March 2009 or after the 1987 stock crash—most investors rush to sell rather than buy.
There seems to be an alluring scent that wafts through the market during bullish times, enticing investors with visions of easy wealth. Conversely, the aftermath of a market crash emits a foul odor that drives people away from potentially wise investments just when they should be buying in.
This behavioral paradox in investment psychology sharply contrasts with shopping for everyday goods, where consumers quickly recognize a good deal on items such as jeans or electronics. When it comes to stocks, however, emotions often dictate irrational decisions, leading to the tendency of buying high and selling low driven by fear and greed.
How to Seize the Day with the Mother of All Speculations
Although stock prices have risen significantly, they cannot double again without experiencing a substantial pullback first. The prospect of turning a modest investment into a small fortune under such conditions remains slim.
Yet, what if there existed an overlooked sector currently trading at bear market lows, poised for a remarkable surge over the next year? Would you heed Horace’s advice to seize the day, or opt for a conventional S&P 500 index fund while your funds stagnate alongside the broader market?
If you’re ready to embrace today’s opportunities, we have something intriguing to share. Rest assured—it’s not merely another stock tip but something much more compelling.
Before we unveil it, we ask you to set aside any preconceived notions. The opportunity we’re presenting is largely disregarded and even detested by the majority.
Still with us? Here it is…
The exciting opportunity on the table is gold—specifically, gold mining stocks. Sound familiar? Yes, it’s an unpopular sector currently mired in a bear market.
Gold had a dismal performance in 2013, plummeting from around $1,800 per ounce to roughly $1,200 by early 2014, marking a one-third loss in value.
However, gold mining stocks were hit even harder in recent years. For example, junior gold stocks (NYSE: GDXJ) saw declines exceeding 80 percent from gold’s peak. This situation created a unique opportunity.
The catalysts that fueled gold’s 645 percent rise from 2001 to 2011 remain in play. The federal debt, now surpassing $17 trillion, continues to grow unchecked, while the Federal Reserve persists in its reckless quantitative easing and zero interest rate policies.
Stock prices have inflated to dizzying heights. Since bottoming out in March 2009, the Dow has surged by 143 percent, the S&P 500 by 165 percent, and the NASDAQ by 213 percent—all while the economy limps along with painfully slow growth, and the middle class faces increasing pressure.
The eventual realization of this facade of recovery will puncture the stock market bubble, revealing the consequences of reckless money printing and unchecked debt growth. As a result, gold is likely to resume its upward trajectory, reaffirming its status as a safe haven in times of turmoil.
Despite the difficult year for gold in 2013, its price has stabilized and now appears poised for a significant rebound. Furthermore, current valuations for gold mining stocks are exceptionally attractive, making this an opportune moment for those willing to take a chance.
If you’re prepared to seize the day, consider investing in the Market Vectors Junior Gold Miners Exchange Traded Fund (NYSE: GDXJ).
Remember—this is a speculative venture, so do not invest more than you can afford to lose. But with a bit of fortune, your modest investment could see substantial returns.
Sincerely,
MN Gordon
for Economic Prism
Return from How to Seize the Day with the Mother of All Speculations to Economic Prism
