It is an awesome time to be in equities. The S&P 500 just closed above 1400 and the Dow is solidly above 13,000. Interest rates on bonds are finally starting to tick upward and almost all the economic news has been good.
If I had a significant stake in precious metals or long term bond funds, I would be really nervous about right now. BTW, there is still plenty of room to buy in on some really solid companies at great prices. It looks like the U.S. economy is finally starting to improve.
Of course, major macroeconomic hiccups could cause a setback (Spanish default, major Chinese slowdown, etc.)
Showing posts with label investing. Show all posts
Showing posts with label investing. Show all posts
Thursday, March 15, 2012
Monday, February 6, 2012
The Gold Bubble
I think that people who are buying gold right now are out of their minds. Evidence that gold is in a bubble:
1) Ads selling it everywhere
2) Meteoric rise uncorrelated with inflation
3) Huge markup from producer to consumer
Gold really has no significant use besides jewelry and as a store of wealth. It doesn't earn a return like stocks or bonds. One day (probably after our economic troubles subside), gold owners are going to realize that their gold doesn't do much except look pretty and the wailing and gnashing of teeth will be tremendous. (As in, "the $20000 worth of gold I bought is now worth $7000).
As seen on a bumper sticker: "Fearful people do stupid things."
Full disclosure: I don't own any gold bullion, securities or derivatives nor do I intend to within 72 hrs.
1) Ads selling it everywhere
2) Meteoric rise uncorrelated with inflation
3) Huge markup from producer to consumer
Gold really has no significant use besides jewelry and as a store of wealth. It doesn't earn a return like stocks or bonds. One day (probably after our economic troubles subside), gold owners are going to realize that their gold doesn't do much except look pretty and the wailing and gnashing of teeth will be tremendous. (As in, "the $20000 worth of gold I bought is now worth $7000).
As seen on a bumper sticker: "Fearful people do stupid things."
Full disclosure: I don't own any gold bullion, securities or derivatives nor do I intend to within 72 hrs.
Friday, January 27, 2012
Newt Gingrich is a hypocrite
First off, I am not a huge Mitt Romney fan. I think he tells people what they want to hear (worse than most politicians). However, it takes a lot of nerve for Newt Gingrich to criticize Mitt for holding shares of GoldmanSachs. His reasoning is that this is somehow immoral because GoldmanSachs is foreclosing on properties here in Florida. So what? Number one, these people are losing their homes because they made irresponsible decisions. The banks did too, but the home buyers aren't blameless.
Second, and more importantly, my immediate thought was: "I guarantee Newt has investment exposure to companies doing the exact same thing." Mitt Romney, being an astute investor, quickly pointed this out in last night's debate. If you are invested in a mutual fund, odds are that some of your companies (on a tangent: I believe that if you hold stock in a company, on your own or through a mutual fund , you should view yourself as a part owner not a gambler) are foreclosing on properties as we speak.
Second, and more importantly, my immediate thought was: "I guarantee Newt has investment exposure to companies doing the exact same thing." Mitt Romney, being an astute investor, quickly pointed this out in last night's debate. If you are invested in a mutual fund, odds are that some of your companies (on a tangent: I believe that if you hold stock in a company, on your own or through a mutual fund , you should view yourself as a part owner not a gambler) are foreclosing on properties as we speak.
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