I was just sent THIS LINK ^[1] (thanks Richard) to a very interesting article. Actually, the entire web site (Capitalist Exploits ^[2]) looks like it would be worth exploring, but at this stage I’ve only read the one article.

The article shows the average annual 3-year returns from a bombed-out sector, industry and country. For example, it points out that stock-market sectors that have fallen by 80% from their highs have, on average, achieved a nominal return of 172% per year over the ensuing 3 years.

With GDXJ having suffered a peak-to-trough shellacking of 87%, this has relevance to the gold-mining sector.

The gold sector’s 2-3 year risk/reward is phenomenally attractive, regardless of whether or not gold’s long-term bull market is intact. However, it would be unwise to attempt to take advantage of this exceptional intermediate-to-long-term profit potential via leveraged ETFs. I explained why in a previous post ^[3].