Where is your money invested?

[synergy1]

Value investing refers to investing based on fundamentals and understanding that short term fluctuations in the market may not reflect that.

I wanted to quote this because in essence, this is what has guided most successful investors. There are many other success stories like Ed Thorp who used options, or macro guys like Ray Dalio who trade in hundreds of markets. But the commonality between all of them is that their models are based on some fundamentals at some level. Is the per capita GDP growing or contracting? Is the environment inflationary/deflationary? I think that short term fluctuations are like what I described above - simply sentiment based on mostly on fear. I ignore them if they have no basis of reality. For example, brexit caused a nice little dip in the markets - brexit on the short term wouldn't effect my company's long term earnings in any significant way.

As an example of of short term fluctuations in my holdings ( an airport based in Mexico that went down 30% due to trump's election) - how on earth would trump effect an airports earnings? Would fewer people travel to mexico? Unlikely. Would trumps wall effect the airport's barrier to entry such as access to certain cities? No. After a few quarters, the company continued to grow its top and bottom line earnings - these short term fluctuations proved to be incorrect. Thus the market repriced the company to its earnings relative to competitors in other countries. I love situations like this, and bought it at 73 $ per share, and now it is sitting at 100$ per share, all while paying a 3-4% dividend per year!

Short term fluctuations provide buying opportunities, but don't change my overall worldview *if* the worldview hasn't changed. An example I messed up the short term and structural change was in 2014. In 2014 when the market was oversupplied with oil, a structural change in the market was taking place. This crushed offshore drillers because that particular market was oversupplied. See Transocean's stock price above. This was not a short term fluctuation, and many of the leveraged offshore drillers I thought would come back did not. I thought the change was temporary like it was in 09, but it wasn't. In 09, the Saudi's immediately cut production and as the swing producers at the time, oil production was not able to climb sufficiently, thus resulting in a gradual increase of crude prices to 100 dollars per share. Today, the structural dynamics of the oil markets are much different largely thanks to american shale producers who have managed to innovate - they can pump more oil, quicker at lower costs. Thus any effect of an OPEC cut would be instantly dampened by market forces producing more crude as prices went up. In the realm of value investing, this structural change would be performed in basic analysis - is the industry growing, is there overcapacity, who are the major players? Those sort of questions.

 

[synergy1]

Do I expect the market to move higher short term....yes. Do I want to be caught with my pants down in the market when it starts to dive. no. Look into the fundamentals of the stock market, supply demand, fundamentals of corporations and businesses, look into historical cycles of depression/recessions, war cycles, etc. If you keep your eyes narrowed in on the stock market, you won't notice the other indicators surrounding the market flashing red. The stock market that you trust so much is not in a vacuum. It is tied to everything else in the world and the world is not in good shape. Japan,China, USA, Europe, South America, and many more are in a recession or depression. We're hiding it well with media manipulation but this doesn't change anything. Look at whats going on in Venezuala because of socialism. Europe is not far away. Japan has had 0% interest rates since 1999. Sure if it was one or two of these countries, it wouldn't be a problem but it's not. It's now all of these countries. I've tried to label countries that you probably wouldn't expect since you know about China, US, Europe, etc.

I don't go by the media, at least to the best of my abilities. I study the facts I can find. You are a smart guy, and I am sure that your dealings with folks is based on their actions and not words. I too take this approach when keeping a barometer of our economy. For example, what is the spread between corporate and govnt treasuries of certain maturities? This tells me that one market might view a risk in said market if these spreads increase due to perceived risk. These actions are the ones I follow because its real people with real money. What about what is happening in the markets? What if you have days where prices move up or down, and the volume is more than average? That tells me very important people are taking an opinion of the markets. Again, actions speak louder than words. I have many, many more indicators for my barometer, and am sure that I am missing some...but its a start.

As for the macro view, you are correct in saying that its all tied together. In addition, its all very complex. I try and take very simple views of the world market on the data I can find. A sophisticated example of this would be Saros's famous trade that crushed the British pound, which he famously shorted back in September of 1992. How did he do it? He did his research into the two economies in question - GB and Germany, both of whom had their currencies pegged to one another. He researched the Bank of England, BOE, and correctly concluded that they were an academic institution ( for better or for worse) and knew that as UK headed towards recession, that they would take the academic approach and cut rates. But this would entail decoupling from the DM, which eventually happened, BOE cut rates, and Saros made a killing. I don't take quite this myopic of a viewpoint of the macro side, but keep tabs of who we do business with and what other countries are doing. Japan, and Europe are on my radar, but only in a passive sense. Would cantageon of european banks effect industries here ( in my due diligence, this is industry risk). I invest in what I know, but my investments do not entirely live in a vacuum. Admittedly, I need more study in this space, as investing is a continual process of improvement and a ton of reading!

Countries I would like to invest in are Iran, India and South Korea. I have done no real research on them, but what I have found out are that companies in these countries are priced VERY low at the moment. Each are not without their challenges, but Iran especially has companies at single digit earnings multiples! This is unheard of in the USA, as you and many others have pointed out that equity here is expensive and probably has more downside than upside. I also hear rumors that Buffet is doing his net-net investing in South Korea. Data for these countries is hard to come by, and buying these stocks seems to be equally difficult!

Okay, thats enough from me. Thank you all for reading my walls of text.

 

[AAAgent]

Bro, a number of countries could end the world now if they wanted. Nukes ARE the end of the earth. There is no speculating what the next war will consist of, we already know it. If it happens, 99% of the world will be dead. Who cares?

There is a difference in having nukes and having to use nukes. There is a difference in having the ability to wage war and waging war. Most countries and politicians don't want large scale war. People don't want to die, especially for causes they don't agree with. So having a war that your people are willing to die for even with media manipulation is hard. manipulation only convinces the lowest level people, but the more intelligent people don't fall for that. Then you have protests, riots, and potentially civil war. Politicians don't want civil war so they'll be careful of getting us into wars we can accept and can't accept. That's why we're in these pseudo wars in the middle east where we lose minimal americans/people vs. arabs. From 2000 till now, we've lost less than 7,000 people from military related deaths compared to over 1,000,000 arabs. We're essentially over there exterminating them at very little risk of loss of human life on our end.

So can many countries cause world war 3 now? Yes, most definitely. What is in it for them to cause WW3? Nothing but chaos, destruction and their own death most likely. If they are not killed by the nuclear blast and fall out, they will be hunted by their own people and the enemy. War is all posturing now until one side is squeezed by sanctions or pushed out of power. At the same time, smart countries like Russia and China, ensure that they buffer zones so it's more difficult for ground invasion. USA currently controls the majority of the worlds naval waterways and with the additional military bases around the world, we police the world and ensure the petrol dollar is used as the worlds reserve currency. The stronger military powers not allied and paying homage to the USA, have pretty much ensured they cannot be invaded by ground, and have very advanced anti aircraft/missle weapons. They are working fast and furiously to protect their waterways as well which is why you see China in the South China Sea building man made islands. They want that buffer zone in the water that is currently a weakness in the countries safety. Understandable why Japan would be worried since they have slaughtered, raped and pillaged China less than 100 years ago, and the Chinese have not forgotten. To make it worse, the Japanese nobility and politicians have not formally apologized for their atrocities.

Do I think there will be a world war 3? I have no clue, but I know none of the countries in power want it. War often cascades and that is dangerous. Especially in such an intertwined world such as the one we are in now. We do however need to decrease our population or innovate ourselves out of this mess. Expandi0ng to living on mars and finding better ways of cultivating crops and livestock are some scenarios that might make a difference. Are we on the cusp of this anytime soon? No. Majority of Asia is bursting at its seams and population is already starting to decline because there is no room to expand. THey've already expanded out and up to as much land as they own. Although it doesn't make sense to have war and no one wants war, it seems like we're being pushed towards it. Most economic depressions eventually lead to some type of revolt like what is going on in venezuala right now. Majority of politicians will not let this happen and will find someone else to blame. Maybe in europe it will be the muslims, maybe in Japan it will be china but the politicians will not blame themselves and let themselves be hanged for it.

My whole point is understand these geopolitical/political/economic situations. Understand which countries are stressed and what actions may come form these stressed actions and invest off of it. Learn from history what has happened to understand what may happened going forward. It's how people made money off the 2000 crash, the 08 crash, etc. and made fortunes.

 

[EyeBRollin]

No no no no no!

I don't have too much time to educate you, but you do you and maintain stupidity. Here's a bit of free knowledge for you since you obviously need it.

A gold investor educating me on macroeconomics? Lay off the nutter websites and right-wing radio commercials.

*cracks knuckles*

No fiat currency has survived indefinitely, let alone the length of time our currency has.

That has nothing to do with the currency itself. That has to do with the political stability of the state that issues it. A country's fiat currency is based on its political stability and reputation (i.e. it's likelihood to pay it's investors).

Also, the USD has already devalued over over 99% since inception.

Irrelevant. Currency is just a point system. The government can make a loaf of bread worth $0.50 or $50 if it wants to.

Just look at what has happened to gold and bitcoin since I made my last post. Gold has shot up 3%, bitcoin up 10%, and dollar has gone down. Our dollar is being announced that it will be devalued by Trump because it's too strong (more manipulation).

Correct. All countries manipulate their currency. That's the job of their central bank. Because the currencies float against other fiat currencies, it is beneficial for the country's exports if the currency is weaker. (see: China)

We have war in Syria and potentially Russia. We have potential nuclear war with North korea and China amassing troops near North Korea. Not only do we have potential war with North Korea, we have potential war in East Asia if there is war in North Korea.

Which has nothing to do with the U.S. dollar being a sovereign fiat currency. North Korea and China can blow itself up; that has nothing to do with the U.S.'s ability to issue more dollars.

 

[synergy1]

North Korea and China can blow itself up; that has nothing to do with the U.S.'s ability to issue more dollars.

Slightly incorrect. China is one of our largest sovereign debt buyers, so the US could potentially face a budgetary windfall if they can't find buyers of treasuries. As far as I am aware, the government only has months of money on hand for all spending, so a healthy market for US treasuries is crucial towards maintaining our current spending infrastructure. Lower demand would also cause rates to go up as lower bidders would win auctions due to less demand - that could in theory slow down the economy in the long haul.

 

[EyeBRollin]

North Korea and China can blow itself up; that has nothing to do with the U.S.'s ability to issue more dollars.

Slightly incorrect. China is one of our largest sovereign debt buyers, so the US could potentially face a budgetary windfall if they can't find buyers of treasuries.

That's of no consequence. The government can buy its own debt. It does that all the time. Government debt is simply an accounting value of outstanding treasury deposits. Who buys the debt is completely irrelevant.

As far as I am aware, the government only has months of money on hand for all spending, so a healthy market for US treasuries is crucial towards maintaining our current spending infrastructure.

That is a lie. The government has no money. It never does. Government spending is authorized through congressional spending bills. When the bill is ratified, it issues orders through the banking system to wire the expenditures into the proper accounts. Poof! It's all done on the computer. The government has no money at all. It is all numbers on a screen. On April 18, a lot of U.S. dollars will be deleted through taxation.

Lower demand would also cause rates to go up as lower bidders would win auctions due to less demand - that could in theory slow down the economy in the long haul.

Not quite. Interest rates are regulated by the fed to control the monetary supply. We've been at zero interest rates for almost a decade because Republicans (and some democrats) along with the corporate media are hell bent on pushing the same austerity that crippled the EU. Inflation is reigned in by interest rates. It's tough to have any kind of meaningful inflation when the media and politicians are brainwashing citizens to believe that public sector spending is bad for the economy. The opposite is true; government spending (think: stimulus) is needed to heat up the economy and cause inflation.

Welcome to Modern Money in 2017. Now that Trump is President, Republicans in Congress won't give a damn about debt or federal spending.

 

[AAAgent]

A gold investor educating me on macroeconomics? Lay off the nutter websites and right-wing radio commercials.
*cracks knuckles*

That has nothing to do with the currency itself. That has to do with the political stability of the state that issues it. A country's fiat currency is based on its political stability and reputation (i.e. it's likelihood to pay it's investors).

Irrelevant. Currency is just a point system. The government can make a loaf of bread worth $0.50 or $50 if it wants to

Correct. All countries manipulate their currency. That's the job of their central bank. Because the currencies float against other fiat currencies, it is beneficial for the country's exports if the currency is weaker. (see: China)

Which has nothing to do with the U.S. dollar being a sovereign fiat currency. North Korea and China can blow itself up; that has nothing to do with the U.S.'s ability to issue more dollars.

Thank you, I guess? Idiots who get told off but come back to randomly complain by going off on tangents...lol.

*cracks knuckles* - who the fvck says this idiotic sh1t. Before you start pullting the population here with your moronic uneducated comments again,
---

That has nothing to do with the currency itself. That has to do with the political stability of the state that issues it. A country's fiat currency is based on its political stability and reputation (i.e. it's likelihood to pay it's investors). --okay thank you for stating the obvious which was stated earlier dumb@ss. But I guess we're in great shape. $20 trillion in debt obviously instills confidence in our debtholders. An amount we can't reasonably pay off unless we print our dollar to oblivion which will cause a run on the dollar. How will $1.5 trillion USD in circulation pay off $20 trillion USD in debt? I guess we can just print our way into becoming the next continental? fvcking retarded.

https://www.federalreserve.gov/faqs/currency_12773.htm
https://www.federalreserveeducation.org/about-the-fed/history

To finance the American Revolution, the Continental Congress printed the new nation's first paper money. Known as "continentals," the fiat money notes were issued in such quantity they led to inflation, which, though mild at first, rapidly accelerated as the war progressed. Eventually, people lost faith in the notes, and the phrase "Not worth a continental" came to mean "utterly worthless."


Irrelevant. Currency is just a point system. The government can make a loaf of bread worth $0.50 or $50 if it wants to. - and how does this justify anything you are saying? I guess you're saying fiat money means nothing if the government has complete control over it and that's why you should buy gold/silver that protects your wealth from fiat currency manipulated by the government? Great, thanks again for wasting my time. Here's a link to how great fiat currency is when a depression and collapse hits. Someone dumb@sses like you forget that less than 10 years ago this was almost us.
http://www.cnn.com/2016/08/02/americas/venezuela-food-prices/

Correct. All countries manipulate their currency. That's the job of their central bank. Because the currencies float against other fiat currencies, it is beneficial for the country's exports if the currency is weaker. (see: China) - thanks you again for wasting my time.

Which has nothing to do with the U.S. dollar being a sovereign fiat currency. North Korea and China can blow itself up; that has nothing to do with the U.S.'s ability to issue more dollars. - Here you go again...Why are you even posting random points that aren't addressing anything besides quoting me and then writing something completely irrelevant to what was quoted? Here's another Economics 101 for you. If one of the largest economies in the world and the largest producer in the world is slowly recruiting members to trade outside of the petrol dollar/swift system, what will that mean for the worlds existing reserve currency and confidence? I wonder.........

https://www.moneyandmarkets.com/shanghai-gold-exchange-bullish-claim-83846

http://www.huffingtonpost.com/alastair-crooke/petrodollar-us-saudi-policy_b_6245914.html

 

[synergy1]

Not quite. Interest rates are regulated by the fed to control the monetary supply. We've been at zero interest rates for almost a decade because Republicans (and some democrats) along with the corporate media are hell bent on pushing the same austerity that crippled the EU. Inflation is reigned in by interest rates. It's tough to have any kind of meaningful inflation when the media and politicians are brainwashing citizens to believe that public sector spending is bad for the economy. The opposite is true; government spending (think: stimulus) is needed to heat up the economy and cause inflation.

yes, quite and I will explain below.

Its nuanced, but the fed rate is simply the rate the banks lend to one another excess of the reserves they have on hand. We have treasury bills which are the shorter term bond which is extremely sensitive to supply and demand in the secondary market. Thus if an institution/government is looking to derisk , this would drive rates down due to demand for these shorter term notes. The rest of the market would adjust what type of yield they would accept ( the amount they are willing to auction or buy on the secondary) for 10 20, 30 year treasuries. As an example if the risk premium for a 1 year treasury is currently 1%, than one would expect under normal conditions for a longer maturity ( all things equal) to carry a higher risk and thus higher yield. So while the fed controls the rate banks lend to one another, it is ultimately the market that will evaluate long/short term risks whereupon the forces of supply and demand will shape the yields and the yield curve itself.

So yes, I understand that the breaks are tightening, and the gas is driving rates to 0, or using QE. But my point simply was that the fed sets the rate, but the market also has a role to play in long term rates. If the market demand is down, such as would be if a major buyer like china decided to be absent, it could have an effect on us

The government can buy its own debt.

Explain how this works. As far as I know, the way the government can raise money is that it issues bonds which the federal reserve puts on its balance sheets. This is the essence of quantitative easing. More commonly it was an extra step to provide liquidity even after the rate was reduced to 0 as they bought up distressed securities. But they also buy government debt. As far as I know ,the government does not buy its own debt, but if they do i'd love to hear about how they do.

 

[synergy1]

I know this turned into a normal piss fest into beliefs, and I'll be the first one to fly the flag of truce to talk about actual investments. I've attempted to be respectful in my disagreements as well as provide some of what I have learned to others. If someone disagrees with my research, that is fine. You stick to your guns, i'll go with my own work.

As for what I am investing in now, I am still on the long side of stocks I like, but am starting to notice stocks I would like to short. I tentatively enter those positions understanding that bargain hunters can easily squeeze the market up in a quick fashion. I plan on short a little more heavily as soon as the long side buyers are exhausted, and ample supply hits the market. As for stocks I am long in, I plan on reducing some positions, but letting a few winners run. My overall portfolio is about the same for the year, but the only stock I have purchased is up a little over 30% since jan, and I really like them going forward.

My goal is to develop a quantitative and qualitative framework for myself based on the vast research I have done. I have access to 6 years of financial data for over 4500 securities ,and can create custom screens and models as needed. My handle on data of interest will be my edge, and I plan on keep to the mantra of buying securities with strong fundamentals. Special situations, catalysts, undervalued stocks, but not 'value traps'. Still, there is so much to learn, but through my wins and losses, I am working at it and showing better results each and every year.

Regardless of how people invest, I wish you all luck. If you'd like to talk about ideas back and forth, feel free to send me a PM and we can have a conversation.

 

[EyeBRollin]

\ $20 trillion in debt obviously instills confidence in our debtholders. An amount we can't reasonably pay off unless we print our dollar to oblivion which will cause a run on the dollar. How will $1.5 trillion USD in circulation pay off $20 trillion USD in debt? I guess we can just print our way into becoming the next continental? fvcking retarded.

You just don't get it do you? Government debt is not private debt. It's not a credit card. It's not a mortgage. It is simply a running count of treasury deposits. Monetary sovereignty is absolute. Get it through your skull.

and how does this justify anything you are saying? I guess you're saying fiat money means nothing if the government has complete control over it and that's why you should buy gold/silver that protects your wealth from fiat currency manipulated by the government?

No, read what I typed again. Gold and silver is useless. Enjoy your nutter conspiracy theory investments. I already made my investing suggestions clear; stocks and real estate.

Great, thanks again for wasting my time. Here's a link to how great fiat currency is when a depression and collapse hits.

This is what happens when fanatics run with half-assed concepts. Fiat currency is preferred because of depressions. The U.S. divorced from gold because it restricted the government's ability to spend itself out of economic downturns.

Someone dumb@sses like you forget that less than 10 years ago this was almost us.
http://www.cnn.com/2016/08/02/americas/venezuela-food-prices/

No, the United States is not Venezuela. What did I list as the condition for fiat currency failure?

If one of the largest economies in the world and the largest producer in the world is slowly recruiting members to trade outside of the petrol dollar/swift system, what will that mean for the worlds existing reserve currency and confidence? I wonder.........

That has nothing to do with the U.S.'s monetary sovereignty; it's ability to issue dollars. Is the Canadian Dollar the reserve currency? Pound Sterling? Australian Dollar? Being the reserve currency and being able to issue currency are completely different things.

Have fun wasting your money on gold. We aren't returning to gold standard.

 

[EyeBRollin]

I know this turned into a normal piss fest into beliefs, and I'll be the first one to fly the flag of truce to talk about actual investments. I've attempted to be respectful in my disagreements as well as provide some of what I have learned to others. If someone disagrees with my research, that is fine. You stick to your guns, i'll go with my own work.

We're happy to discuss which stocks, bonds, and real estate investments we prefer. That's the beauty of investment topics. We do know that politics (much of which is rooted in belief and (mis)information) does influence investments, which unfortunately makes the pissing matches inevitable.

But come on... the only time we hear gold pitched as an investment is on extremist nutter talk shows where they constantly warn of the world ending.

 

[AAAgent]

You know you've lost the debate when you have nothing to back up what you claim and only resort to calling the other side a conspiracy theorist/extremist. Why don't you give me some irrefutable proof or source that explains why keeping all your investments in a stock market bubble, real estate bubble, auto loan bubble, bond market bubble, student loan bubble, driven by government and economic policy tied to forcing you into a fiat and now digital fiat currency that is printed in oblivion? All that coupled with geopolitical instability on every continent.

 

[EyeBRollin]

You know you've lost the debate when you have nothing to back up what you claim and only resort to calling the other side a conspiracy theorist/extremist.

I already backed up my claim. A country's monetary sovereignty is absolute. The United States cannot under any circumstance run short of U.S. dollars. Continuing to buy gold as a hedge is futile. We will not return to gold standard.

Why don't you give me some irrefutable proof or source that explains why keeping all your investments in a stock market bubble, real estate bubble, auto loan bubble, bond market bubble, student loan bubble, driven by government and economic policy tied to forcing you into a fiat and now digital fiat currency that is printed in oblivion?

It's called common sense. If the dollar goes to ****, I still own my house, my gun, my car, and X amount of shares in said company. It doesn't matter if their dollar value is $1 or $1 million. Their value is being tangible. Money is just a point system. Gold does nothing for you, pal.

All that coupled with geopolitical instability on every continent.

Geopolitical instability has no effect on the U.S. government's ability to issue U.S. dollars. What part of that are you not understanding?

 

[Tenacity]

But come on... the only time we hear gold pitched as an investment is on extremist nutter talk shows where they constantly warn of the world ending.

Yes, I get tired of these damn gold commercials on Fox News and on Youtube when I'm watching various documentaries. I was watching a damn documentary on the College Crisis (with students graduating with loads of debt but little job opportunities) and at the END of the video, they somehow throw a damn commercial in there for "gold".

I think the entire "buy gold" to hedge against the dollar crashing is a stupid investment, because if the dollar crashes that means the US (for the most part) is going to crash....and if the fvcking US goes down so does the World (for the most part). So you would have MUCH bigger problems in life if that were to happen, than your "ROI" on an investment fund.

The world isn't ending, but it's damn sure changing. My passive investments will remain spread out in a Total Bond Index, Fixed Income CDs, and a S&P 500 Index Fund. Choosing gold, bitcoin, and all cash over these three investments makes absolutely no sense.

 

[AAAgent]

I like how you back up your argument with a statement from yourself.....clearly a winner. I have never stated we would return to a gold standard so I'm not sure why you keep mentioning that. I have stated i'd hold gold to hedge myself against a fiat currency that is being printed into oblivion. What do you not understand from this?

If the dollar goes to sh1t, you think the stock market will be in good shape for long? You want to be in a point system where the maximum amount of points increase everyday while your points stay exactly the same? Common sense says no so i'm not sure where you're pulling your common sense from. What happened to gold during the last crash and what happened to shares in your companies on the stock markets?

What part of geopolitical instability do you not understand? When there is fear in the markets, people turn to precious metals. What is going on right now in the markets? Why is gold up? Tell me what do you not understand?

Here's a link to dictionary.com if you need help with some vocabulary.
http://www.dictionary.com/

 

[Tenacity]

If the dollar goes to sh1t, you think the stock market will be in good shape for long?

AAAgent but if the dollars goes to shyt, the country is going to go to shyt, which means the world goes to shyt. Can't you see that we would have much bigger problems?

If the dollar crashes, the stock market crashes, the bond market crashes, and the real estate market crashes (all of which you say are likely to happen), can't you see that this would be a Global Great Depression? The world would be coming to an end, what would having bitcoin or gold do for you when there's no world economy to function in lol?

 

[AAAgent]

Yes, I get tired of these damn gold commercials on Fox News and on Youtube when I'm watching various documentaries. I was watching a damn documentary on the College Crisis (with students graduating with loads of debt but little job opportunities) and at the END of the video, they somehow throw a damn commercial in there for "gold".

I think the entire "buy gold" to hedge against the dollar crashing is a stupid investment, because if the dollar crashes that means the US (for the most part) is going to crash....and if the fvcking US goes down so does the World (for the most part). So you would have MUCH bigger problems in life if that were to happen, than your "ROI" on an investment fund.

The world isn't ending, but it's damn sure changing. My passive investments will remain spread out in a Total Bond Index, Fixed Income CDs, and a S&P 500 Index Fund. Choosing gold, bitcoin, and all cash over these three investments makes absolutely no sense.

The fact that you watch TV already shows me how intelligent you are. With the internet age here and the access to free information...you need to resort to getting your news and market updates from TV and Fox news?

 

[EyeBRollin]

I like how you back up your argument with a statement from yourself.....clearly a winner. I have never stated we would return to a gold standard so I'm not sure why you keep mentioning that. I have stated i'd hold gold to hedge myself against a fiat currency that is being printed into oblivion. What do you not understand from this?

And what value does gold have if the world goes to ****? No one cares about gold. The value is in tangible assets. Like I said, if the world goes to hell, gold doesn't grant you any tangible value. Can I live in gold? Can I hunt with it? Can gold transport me to places?

If the dollar goes to sh1t, you think the stock market will be in good shape for long? You want to be in a point system where the maximum amount of points increase everyday while your points stay exactly the same? Common sense says no so i'm not sure where you're pulling your common sense from. What happened to gold during the last crash and what happened to shares in your companies on the stock markets?

The stock market always rebounds. You are fundamentally ignoring the concept of owning stocks. It is ownership of a company, or in the case of mutual funds, a collection of companies. We invest in stocks to buy shares of ownership.

What part of geopolitical instability do you not understand? When there is fear in the markets, people turn to precious metals. What is going on right now in the markets? Why is gold up? Tell me what do you not understand?

Last I checked, the stock market was over 20,500 and has been on a consistent upward trend for the last 6 years or so.

 

[AAAgent]

AAAgent but if the dollars goes to shyt, the country is going to go to shyt, which means the world goes to shyt. Can't you see that we would have much bigger problems?

If the dollar crashes, the stock market crashes, the bond market crashes, and the real estate market crashes (all of which you say are likely to happen), can't you see that this would be a Global Great Depression? The world would be coming to an end, what would having bitcoin or gold do for you when there's no world economy to function in lol?

You do understand that the those dollars in the stock market and your bank account are all controlled digitally through a centralized system. You've already acknowledge all the red flags in this system and you still want to hold everything in it? Gold, bitcoin, and cash are not tied to this system. Bitcoin is digital but it's decentralized. What do you not understand from this?

Yes, it is impossible to function in today's society without be apart of the system. I'm just saying don't rely on this system. Never rely on anything you do not control but everyone is so high on Dow 20k, Tesla with net losses year after year but now surpassing Ford, it's like people are blind to all the issues at hand.

 

[EyeBRollin]

You do understand that the those dollars in the stock market and your bank account are all controlled digitally through a centralized system. You've already acknowledge all the red flags in this system and you still want to hold everything in it? Gold, bitcoin, and cash are not tied to this system. Bitcoin is digital but it's decentralized. What do you not understand from this?.

Dude, it's not about the dollars... it's about the shares. Most large-cap companies are multi-national and the mid-cap companies are on their way there. Even if the dollar were to lose its prominenace to other markets, an investor would still own his 10,000 shares in company X. You're focusing too much on the dollar. It's just a point system.