The unfortunate truth is that many investors have gotten scared over the last several months. From the tiniest retail investor to the giant institutional investors looking to move billions of dollars, it seems as though everyone is now worried. The vast majority of American citizens are afraid that the economy is in some kind of recession. High unemployment levels have quickly become the norm and earnings expectations are rapidly on the decline and the best gold stock even seems to have taken a hit.
The truth of the matter is that Europe, China and other countries are even worse off than the United States. This global scare has reached out to everything imaginable. From gold stocks and even corporate bonds, just about everything has dropped significantly. This has stuck home the hardest with one of the riskiest, yet most profitable, stock markets of all time.
The TSX Venture market, known for high-risk, high-reward gold and natural resource exploration stocks, has suffered a huge drop. In the months that have followed since this decline began, the TSX Venture Index has declined at a rate of more than 45 percent. There is hope waiting to shed light on the situation, though.
Fundamentals are improving at a significant rate. The prices of natural resources, which are the driving force behind TSX Venture stocks, have shot up to staggering rates since then. The price of gold has more than tripled. As can be seen, simply because something is on a downtick, doesn’t mean that it will be an inexpensive or even a “buy.” Consider real-estate and other mega-tech stocks, for example. They are all still below their previous record highs.
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