*Our advice for a difficult stock market is to “insist on value.” *We want to emphasize that we are always invested in the markets and that the advantage we find in bear markets is that they give us the opportunity to invest in stocks when they are severely undervalued. To us, bear markets are “super sales” and we find many stocks that are undervalued-naturally they are not the prime choices of the esteemed U.S. brokerage industry.

The Prospectors and Developers Association of Canada (PDAC) convention was held last week in Toronto. Our comments from last week still stand and we still believe that we are soon commencing a positive cycle in gold and mining stocks. Our technical, cyclical and fundamental analyses suggest now is the “time” to be accumulating the gold stocks. Price weakness can be frustrating but what few consider is that it is an opportunity to invest when the mining stocks are “on sale.”

Last week one of the largest weekly “insiders” stock  sales by offcers and directors occurred. These most informed of all investors (they work at these companies) reported approximately $23,000,000 of purchases by the “insiders” but at the same time they reported an enormous $578,000,000 in sales of their own companies shares. Insiders have been selling very heavily over the last year and this level of selling generally occurs during periods when the stock market is making a major top. HOWEVER, we can find many stocks that are very undervalued and are being bought by their own officers and directors.