Working on my stock market trading program, has made me realize that the investing public are in for a surprise over the next few years. I’ll go out on the limb and say that the next few years that I am talking about will be in the neighborhood of 5 years. So figure things will get back to “normal” in late 2015 or 2016.

What does that mean? It means that gold is going to go up in price. It might fall back from where it is trading right now, but it will go up between now and say 2016.

How you buy gold might be a post for another time, but one way is to buy an ETF or an Exchange-Traded Fund. I’ll have a white paper coming out on ETFs in the near future that I will make available to my mailing list for no charge and I will have it for sale at my new website that I will announce in a few weeks.

The gold ETF symbol is GLD. You can buy shares at any stockbroker. Tell them you want to buy the ETF with a symbol of GLD. A recent price was $134. It might be more or less than that now, depending on when you read this article.

Maybe you saw my article back in May;Your Portfolio you know that if you are a buy and hold investor you are not making any money in this market. You need to be actively involved.

If you are an investor you probably already know that there are three ways to make money in the market. One is higher stock value where the price of the stock is higher because the general market is rising and a company’s price earnings growth is going higher. The second way is earnings growth, where the market sees a company making money and buys the stock based on its earnings history. The third way is because of dividends that the company is paying.

The third way is really a result of the second way (earnings growth) in that if a company is making money, they have money left over to pay dividends.

I think the first way, higher stock value, is out of the question for the next five or six years. I am looking for a market that is trading sideways. Up some and down some. Overall, I think the trend will be to the downside. Call me a fool but that is what I think. I’ve been wrong in the past. So that leaves the other two. I have a hard time placing a value on rising earnings, don’t you?

But I know if a company has rising earnings AND pays a dividend it will most likely raise that dividend over time. So if I can find a company that has a history of raising its dividend consistently over time, that’s probably a company to buy.

The question is: Are you buying companies that are paying higher and higher dividends or are you chasing stock profits in the market and losing money?

For Taking Early Retirement (TER), I hope you are enjoying a great retirement or are close to that day!

Jeremiah John

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