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Topic Title: Want to sleep on gold?
Created On Fri Aug 19, 11 02:41 PM

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Fri Aug 19, 11 02:41 PM

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I just would like to recall people selling stocks and buying gold like damned that you can neither eat gold nor sleep in/on it. However you can eat the Kraft Foods sweeties and even sleep in a BoA agency (obviously you must know the guard).

Then buy stock!!! Become the manager!!!

Bye,

GBO

Jim
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Fri Aug 19, 11 05:03 PM

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Perhaps you should trade some of that gold for the meds the doctor said you should take when you start acting like this.

rmax
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Fri Aug 19, 11 05:33 PM

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One too many at lunch?

horacioaliaga
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Fri Aug 19, 11 09:50 PM

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If I was on the market, the only thing I would buy would be gold

Traden4Alpha
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Fri Aug 19, 11 10:01 PM

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Methinks that GBO, who seems to be from France, had a rather CACastrophic week.

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"It often happens that a player carries out a deep and complicated calculation, but fails to spot something elementary right at the first move." -- grandmaster Alexander Kotov --inscribed on gift chess sets given by Amaranth hedge fund.

Edited: Fri Aug 19, 11 at 10:23 PM by Traden4Alpha

frenchX
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Fri Aug 19, 11 10:40 PM

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Well I'm from France and I tend to agree with him somehow (not so drastically though). This crisis (the EU one+ the US one) is 80% speculative. When will people return to rational thinking and fundamental value investing ?

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The important thing is not to stop questioning. Curiosity has its own reason
for existing. Never lose a holy curiosity.

edouard
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Fri Aug 19, 11 10:54 PM

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GBO, your fiance asked you golden jewelry, but gold is now ridiculously expensive and that gets you crazy ??

Traden4Alpha
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Fri Aug 19, 11 11:23 PM

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Value investing is also speculative in that it speculates that tomorrow's profits will be similar to yesterday's profits and will be created by today's assets. Both empirical and theoretic evidence suggests that the central assumption of value investing isn't as true anymore as it was. The fates of companies, and the values of their assets can fluctuate too quickly. Look at Nokia, Palm, or Kodak. IBM, which invented the PC dumped it's PC division in 2005 and now thinks that PCs are obsolete. HP, the current largest maker of PCs, wants to sell their PC division. HP bought Palm for $1.2 billion only 15 month ago, tried to launch new phones and tablets based on those assets, and is now killing the division. It's too easy for assets to become liabilities.

Given the talk in the EU and US of more taxes, will after-tax corporate profits and after-tax returns to shareholders rise? Given all the talk in the EU and US of more taxes, is it worth investing in risky assets?

Given all the false assurances made by government officials that everything is fine, the banks are fine, the GDP will grow, unemployment will drop, etc., but then seeing the real situation being one of bank failures, hidden deficits, and worse-than-expected numbers, is it rational to trust those assurances now? I'd wager that the track record for government assurances of normality is no better than the rating agencies.

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"It often happens that a player carries out a deep and complicated calculation, but fails to spot something elementary right at the first move." -- grandmaster Alexander Kotov --inscribed on gift chess sets given by Amaranth hedge fund.

Edited: Mon Aug 22, 11 at 08:30 PM by Traden4Alpha

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Mon Aug 22, 11 07:13 PM

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You?re right Traden4Alpha, stock investment today is more about betting on systematic continuity.

Btw Edouard, thx for taking care of my jolie fiance, fortunately gold is USD denominated so it stays affordable ;-)

Bye.

hayes
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Tue Aug 23, 11 02:01 PM

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