I am a long term bull on gold. The bear market ended when gold completed a six year head and shoulder bottom. I called the end of the gold bear market over a year ago in my post “The Bull is Back“.
As gold broke to an all time high recently, I had a Facebook friend post about gold. He gave the standard talking points about why gold was going higher. Markets move, people find reasons. That is another way of stating that markets create opinions.
I am not saying gold has topped. I am not saying gold is in the mania stage. Although I believe this will happen and can happen at any time. I am saying that when a Facebook friend makes a post like that, you can bet a nice pull back in the price of gold is coming.
When you start to see the rhino horn, you should grow more cautious than bullish.