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Title: Financial/Investment News and Comments
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Published: Feb 9, 2018
Author: To be determined
Post Date: 2018-02-09 07:55:59 by A K A Stone
Keywords: None
Views: 12466
Comments: 58
This is the place for financial talk. A place to share entrepreneuial ideas. To discuss investment strategies whether they be stocks, real estate or starting a new business. Or improving an existing business. Anything money and finance related is welcome to be shared right here.
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Begin Trace Mode for Comment # 18.
#2. To: A K A Stone (#0)
Comparisons and baselines. Here's a list of things you could invest in. With all investments there are transaction costs. With all but one there are taxes. With many there are holding costs as well. To be able to compare investments, a benchmark is needed. I think that the yield on triple-tax-free municipal bonds is the best benchmark because it is a "safe" investment, with no taxes on it, so it's "pure". Everything else can be compared to the TTF bonds to see how each stacks up.
You posted to me: Exactly! I have the same view about gold hoarding. If these companies advertising for people to buy their gold because of the imminent meltdown of the economy and hyperinflation of the dollar really believed their own hype, why are they selling the gold in exchange for those soon-to-be-worthless dollars? They sure want dollars rather than holding onto their piles of gold, so THEY obviously don't believe what they say. I was speaking about those who have ideas on investments and make their money selling those ideas instead of hiring a staff and primarily working those “great” ideas. As far as the hawkers of precious metals are concerned, they are playing percentages. They are going for volume and percentage using the “60/40 Rule.” They have to buy the metals to sell them. As the market fluctuates, they will actually at times sell some metals at below their cost. But with the volume and by playing the ups and downs like Swing Traders do.....they will over a period of time sell more metals higher than they do lower. If they have a million dollars of gold, instead of holding it and hoping for a ten percent increase....they will turn it multiple times while making a percent off each sale. Therefore, as merchants....they will make more money buying and selling than buying and holding. Holding (hoarding) gold is for the individuals who wish to preserve assets. But as we discusses, undeveloped land with extremely low property taxes, like farm land, is a much better investment. Make sense?
Absolutely. I wasn't suggesting that the gold sellers are foolish. I was suggesting that the people who buy the hype that they're buying gold against Armageddon are, and that the gold sellers who press that hype (and they DO! I see the commercials and hear the arguments) are not honest.
Paper, Binary, or Actual gold-painted Tungsten "gold"?
Nothing wrong with buying gold and investing in it in whatever form one wishes. It is essentially an investment in enter It's the mindset that the world is ending and this here gold's gonna SAVE me that is problematic.
Should You Own Bitcoin Or Gold? That's Easy Summary Gold bugs are rarely, if ever, bearish on gold. To them, it’s the only real currency in a world of money-printing central banks endlessly devaluing their fiat (that is, paper) currencies. There are few people who believe so fervently as gold bugs. But bitcoin fanatics come pretty close. These folks believe that this decentralised digital currency is the ultimate means of easily transferring value without the need for centralised entity, intermediary, or central bank. Bitcoin is a libertarian dream. Now, given that gold bugs and bitcoin fanatics share a common desire – a completely independent store of value – and a common enemy (central banks), you’d think they might be the best of friends. But they’re not. In fact, they’re more like dogs and cats – or chalk and cheese. They don’t mix well, at all. I know this because I’m privy to a private mailing list that’s run by an old family friend who’s a consigliere of one of Hong Kong’s wealthiest families. He, along with a couple dozen business and financial gurus and veterans, some with names you recognise, share their investment ideas and opinions on all things related to global finance and investing. And recently the topic of cryptocurrencies and bitcoin came up. After watching carefully thought-out emails travel back and forwards within the group, I drew a few conclusions. Gold bugs don’t like bitcoin Most of the guys (and they’re almost all men) on this email list are grizzled investors, and they like their gold. To be precise, their physical gold. They dismiss bitcoin as a fad, a craze, all hype and no substance. As I said, bitcoin is frequently compared to gold. They’re the only two widely distributed, decentralised methods of exchanging value as currency. There is no central authority issuance like there is with U.S. dollars or any other fiat currency.
Why gold could soon get a boost from the wild market volatility
Another problem for stocks: Earnings may be getting too strong for the market's own good When it comes to corporate earnings, there actually can be too much of a good thing. History has shown that years with particularly high profit growth, the chances are actually better that the market finishes lower. This comes about primarily when expectations get so high that even strong performance isn't enough, and when invstors get concerned that the strong earnings are indicative of an economy that is overheating. Counterintuitive though it may seem, the pattern is important. That's because many investors are using the strong performance on both the top and bottom lines for corporate America as the foundation for their bull market thesis. History has shown, though, that froth comes in many forms, even profits. "If you look at the years where earnings were up double-digits, you actually had a slightly higher probability of having a down market vs. other years, which is really quite fascinating," said Dan Suzuki, equity and quant strategist at Bank of America Merrill Lynch. During the bull run of 2009-17, there was a strong correlation between profit growth and the rise of the stock market indexes. However, 2018 looks to be a particularly robust earnings year, potentially the best since the recovery began in 2009 and continuing off a powerful gain in the fourth quarter of 2017. The end period for last year now is tracking for a 13.4 percent earnings gain with 80 percent of companies beating on revenue, the highest level since FactSet began tracking the number in 2008. With such big numbers, though, comes a coordinating level of expectations, and that's where the market can run into trouble. "When optimism is very high and valuations are high, the market is much more vulnerable," Suzuki said."Even a small uptick in fear can have an outsized effect in that type of backdrop." There already have been some manifestations of the trend. Over the past several quarters, investors have provided little reward to companies that beat Wall Street earnings estimates. Most recently, outperformers have been rewarded with just a median 0.3 percent gain after reporting for Q4, compared with the historical norm of 0.3 percent. All of this comes amid ever-higher expectations for market performance, at least before the recent correction that has hit the major averages. While outsized profits may sound like a good problem to have, they're adding another dynamic to an investing minefield that's getting trickier to navigate. "When we're getting late into the cycle and sentiment-driven market expectations and optimism gets more and more bullish, this is what it leads to," Suzuki said. "It really sets a high bar, in which it's easy to disappoint."
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#3. To: Vicomte13 (#2)
(Edited)
This is a response to your post on another thread and more fitting for discussion on this new thread. I always figured if they were any good, they could hire a bunch of people to work directly for them and clean up on making money and forget about selling advice.
#5. To: Gatlin (#3)
Make sense?
#7. To: Vicomte13, Gatlin (#5)
people who buy the hype that they're buying gold against Armageddon
#15. To: VxH (#7)
people who buy the hype that they're buying gold against Armageddon Paper, Binary, or Actual gold-painted Tungsten "gold"?
#16. To: All, Pinguinite (#15)
#17. To: All (#16)
#18. To: All (#17)
Replies to Comment # 18.
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