RE: The Stock Market Has Officially Entered Crazytown Territory

mo money mo problems wrote:

Ho Hum wrote:

What's the obsession with gold about? I don't see what makes it more special than any other commodity.

can you read? Its a hedge against the market. The two are intrinsically linked, one outperforms the other for long periods of time, allowing someone going back and forth to profit immensely.

I would expect that Gold at 1500-1750 in 2012 and earlier this year was ahead of total return SP500 from the past 40 years, but is now slightly behind at with it at 1200 and the SP500 making a new high at 1841.

In what way are they linked? You mean people sometimes leave the market for gold? But the same could be said for something like copper or silver. Focusing on gold seems overly simplistic.

atrrunner wrote:

Of stocks go down, letsrun laughs at the fools who invest. If they go up, letsrun says the market is broken. There's no outcome that will satify the gold and doomsday clowns.

How about Flagpole who views a big downward correction as a good thing

[quote]Deuce of Diamonds wrote:

i know im not selling. Avoiding the 25% immediate hit on profits. I cant imagine what it feels like to be in the 39% bracket. Thats just my reasoning for the continual move.

The 39.6% top bracket is on earned income, not capital gains

Well, at age 60 you should be buying Long Term Care insurance to help with that.

Flag, there isn't one con you do not fall for. Is there?

agip wrote:

If there is truly huge demand for physical gold (which may not be true at all - I don't know) yet the price is falling, the only explanation I can come up with is that supply is more than huge, it is double plus huge. Possibly triple plus huge.

the only way this is bullish for gold is if governments are selling gold in a panic. when that stops, gold will rocket back up, the theory would go.

am I right?

or is there some sinister other reason for the 30+% fall in gold price from its peak?

You're right that I generally disregard goldbugs' theories - they are almost always far fetched, conspiratorial and apocalyptic.

I don't like to get to much into the gold debate, its usually dominated by strong opinions and weak facts. However, I find it interesting that more gold is warehoused to satisfy trading (GLD, GDD) than is delivered for actual use (jewelry and electronics).

Ho Hum wrote:

What's the obsession with gold about? I don't see what makes it more special than any other commodity.

It's called history, son. Ever hear of something called "The Gold Standard"? It technically doesn't exist anymore, but that doesn't mean its not relevant.

Barnyard wrote:

[quote]Deuce of Diamonds wrote:

i know im not selling. Avoiding the 25% immediate hit on profits. I cant imagine what it feels like to be in the 39% bracket. Thats just my reasoning for the continual move.

The 39.6% top bracket is on earned income, not capital gains

This is why I love the stock market. There are so many people making decisions who don't have the faintest clue what they are doing. Let them continue bumbling around in the dark while the rest of us make money moving against them.

Exactly. And nevermind the mass-buying in the Asian markets... it will have NO bearing on future values. :sarc:

Realism wrote:

Ho Hum wrote:

What's the obsession with gold about? I don't see what makes it more special than any other commodity.

It's called history, son. Ever hear of something called "The Gold Standard"? It technically doesn't exist anymore, but that doesn't mean its not relevant.

Agip, here is a challenge for you...

1) go to your local precious metals dealer and ask them about demand for physical metal.

2) return to letsrun.com and post about your revelations.

......

Taynt Chodeberg wrote:

Agip, here is a challenge for you...

1) go to your local precious metals dealer and ask them about demand for physical metal.

2) return to letsrun.com and post about your revelations.

......

Taynt, here is a challenge for you...

After you have gone to your local precious metals dealer and learned that demand for this metal is through the roof ask them why don't folks ask for a higher price to sell it to those wishing to buy.

The ETF market is not the same as the physical. Is that a good enough answer for you?

Why make things complicated You could have just sunk 1000 bucks into Berkshire Hathaway and have had 4.5 million dollars today. Silver in lieu of gold is drastically different. Silver was 11 dollars in 1970 and ~20 today. You would have lost like 2/3s of your buying power to inflation. You would have to be a lot better market timer to make this work.Marketing time makes any strategy look good. Ignore the fact it is impossible. You have to ask your self is the gold bubble popping (1600 to 1200) or getting set for the second stage (1200-4000). Maybe the run up in gold in 2012 was just a fear of a Romney presidency and in 2016 we will have the same trend.And if you could really time the stock market, there is no reason to leave it. If you think it is overvalued start buying put options and make a killing on the way down. A lot of people talk about the stock market crashing. Very few are willing to put their money where their mouth is.People like gold and silver because they are shiny and are easy to understand. Trying to figure out the future value of something is much harder. Can a company like twitter convert their millions of users to cash (google and facebook have done a decent job of that) or not (see myspace and to some extend companies like yahoo). The answer will be obvious in 5 years but right now it is a bit more cloudy.

Taynt Chodeberg wrote:

Agip, here is a challenge for you...

1) go to your local precious metals dealer and ask them about demand for physical metal.

2) return to letsrun.com and post about your revelations.

......

yes, and then I will go to a subaru dealer and ask if anyone likes the new Impreza, because I sort of like it but I also really like the Fusion.

And then I will go to the local New Balance store and ask if the new 1400 v2 is any good or just crap, not as good as the first one.

I mean really.

Taynt Chodeberg wrote:

The ETF market is not the same as the physical. Is that a good enough answer for you?

No.

Yeah, really...

Well, darn

Pointing Out the Obvious wrote:

Taynt Chodeberg wrote:

The ETF market is not the same as the physical. Is that a good enough answer for you?

No.

false economy wrote:

I would laugh my *ss off if the stock market completely collapsed.

All those stock traders, insurance agents, bankers, etc who don't do any real work, looking down upon me when I come home from a 12 hour day at the factory.

I could survive in the wild for years.

They couldn't survive without their TV remote.

+1

Look, I invest too, but also would get some satisfaction from seeing this pricks lose big. Even better would be seeing some get perp-walked to prison. Many of them belong there.

While factory work may not pay the best, there is a definite satisfaction in knowing your work produces a tangible/product good that benefits society.

sayer of true things wrote:

false economy wrote:

I would laugh my *ss off if the stock market completely collapsed.

All those stock traders, insurance agents, bankers, etc who don't do any real work, looking down upon me when I come home from a 12 hour day at the factory.

I could survive in the wild for years.

They couldn't survive without their TV remote.

+1

Look, I invest too, but also would get some satisfaction from seeing this pricks lose big. Even better would be seeing some get perp-walked to prison. Many of them belong there.

While factory work may not pay the best, there is a definite satisfaction in knowing your work produces a tangible/product good that benefits society.

You know what - when I help a widow manage her assets and get her a check every month and see the trust in her face, it feels pretty good.

I have a referral only business - I make enough of my clients happy that new ones call me so I can help them.

So say whatever you want to yourself to make yourself feel good and angry, but doesn't make it accurate.

agip wrote:

sayer of true things wrote:

+1

Look, I invest too, but also would get some satisfaction from seeing this pricks lose big. Even better would be seeing some get perp-walked to prison. Many of them belong there.

While factory work may not pay the best, there is a definite satisfaction in knowing your work produces a tangible/product good that benefits society.

You know what - when I help a widow manage her assets and get her a check every month and see the trust in her face, it feels pretty good.

I have a referral only business - I make enough of my clients happy that new ones call me so I can help them.

So say whatever you want to yourself to make yourself feel good and angry, but doesn't make it accurate.

It's pretty accurate. What other profession can you name that, on average, produces worse results than you could get on your own?

Your profession, on average, is parasitic.