"The trend is your friend." You've probably heard the investing adage before. It's typically used in reference to buying stocks that are in defined upswings. However, there's an even more important application of the saying for long-term investors.
After a huge rally that saw the S&P 500 regularly hit new highs, the stock index recently suffered a losing streak of five consecutive days before snapping out of it. The silver miner operates three important mines in Mexico, the world's top silver-producing country, and it has a fourth operational mine in Nevada.
The benchmark S&P 500 (SNPINDEX: ^GSPC) has more than doubled since hitting its coronavirus pandemic low on March 23, 2020, and it's, thus far, gone the entirety of 2021 without so much as a 5% correction. Unfortunately, a number of historical metrics would suggest that this rally isn't sustainable, and that a stock market crash or sizable correction could be on the way. For example, even though the internet has democratized trading and helped to expand price-to-earnings multiples over time, the current valuation multiple for the S&P 500 is nothing short of worrisome.