As financial planners we are advising our clients on medium to long term investment, however, we still like to get clients invested at the most opportune time where possible.
Please see diagram below. We are advising many of our clients to add Silver to their portfolios. However, we will wait until the indicator below dips below what we call the ‘over sold’ point (black line below 20).
When an asset is showing as being ‘over bought’ (black line above 80) the risk that the asset will fall in value quickly, in the short term, is high. So, we wait until there is an opportunity to get in at a better price.