There is no sure fire way to know if you should be buying an asset that has already risen a lot. I do think that your sense of urgency is a pretty good contrary indicator. If you feel like you absolutely, positively need to buy some asset today, you might want to just hold off a bit and see if prices come back down. And I don’t mean you have to wait until it crashes because it may not, but we all know that prices that have been rising rapidly won’t continue to do so indefinitely.
~ Joseph Y Calhoun III, Alhambra Partners
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.