Seeking Alpha
View as an RSS Feed

Plan B Economics  

View Plan B Economics' Comments BY TICKER:
AAPL, BAL, BP, C, CIT, DBC, DIA, EWU, F, FXI, GDX, GLD, GOLD, GS, HYG, IYR, JPM, NES, NYT, OIL, PG, SLV, SPY, TLT, TSLA, UNG, UNL, USO, UUP, VWO, VXX, XLF
Latest  |  Highest rated
  • Here's What Happened The Last Time The Fed Owned All Outstanding Treasuries [View article]
    The boom happened because Europe needed to be rebuilt from the ground up and because hundreds of wartime innovations were brought to the commercial sector.
    Apr 6, 2013. 01:02 AM | 4 Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    Tell that to Mr T
    Mar 16, 2013. 04:42 PM | 2 Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    jinvickery

    No dollar value used. Read my explanations above for details.
    Mar 16, 2013. 02:07 PM | Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    Thanks Abegaz

    The way I did this 'unit' is really a proxy (it doesn't refer to dwelling type) for aggregate housing prices. For example, housing units per ounce is calculated by using CPI for housing as the denominator and the gold price as the numerator. So 'unit' in this case is effectively housing CPI per ounce.

    It is similar to how one might consider a Sharpe measure as excess returns per unit of risk.

    I used such a denominator not to show how much house one could buy with an ounce, but rather to show how the relationship between gold and housing prices (and the prices in the other charts) has changed over time.

    Honestly though, there are probably 10 other ways I could have done this. I just picked one methodology and applied it across a number of price indices.
    Mar 15, 2013. 08:40 PM | 1 Like Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    Bornagain...

    The ratio is based on the housing component of CPI. 'Unit' doesn't refer to a specific dwelling type.

    This is an arbitrary ratio using housing CPI as the denominator...the point is not to show how many 1 bedroom houses one can buy for an ounce of gold. The point is to show the ratio of gold prices and housing prices over time. This why the word 'units' is used as opposed to square feet, median houses, etc.
    Mar 15, 2013. 08:09 PM | 2 Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    So perhaps there is a fundamental rationale for gold's valuation.
    Mar 15, 2013. 05:49 PM | 1 Like Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    Correlations change. I think people looking to protect from exploding debt are forecasting something that has no precedent in America.
    Mar 15, 2013. 05:47 PM | 2 Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    I think there are many different and often contradictory ways to look at gold. Stay tuned for more...
    Mar 15, 2013. 05:45 PM | 2 Likes Like |Link to Comment
  • Gold May Be Richly Valued [View article]
    The delta in gold price per ounce vs. the delta in various price indices. Both indexed to a common start value.
    Mar 15, 2013. 05:42 PM | Likes Like |Link to Comment
  • Money Is Debt, Gold Is Money [View article]
    Thanks
    Mar 8, 2013. 06:47 AM | Likes Like |Link to Comment
  • Money Is Debt, Gold Is Money [View article]
    Thanks Stu
    Mar 8, 2013. 06:46 AM | Likes Like |Link to Comment
  • Bullish On Stocks? There May Be A Better Alternative [View article]
    Nope. My agenda is laid out in the article.
    Feb 26, 2013. 10:27 PM | Likes Like |Link to Comment
  • Bullish On Stocks? There May Be A Better Alternative [View article]
    Happy to hear you know of the relationship already. Many people don't.

    This isn't an article about how assets perform in a rising rate environment. I can address that in the future.
    Feb 26, 2013. 10:26 PM | Likes Like |Link to Comment
  • Bullish On Stocks? There May Be A Better Alternative [View article]
    Then don't buy high yield bonds or stocks. This isn't about the case for the asset class right now...this is about the case for using high yield bonds instead of stocks.
    Feb 26, 2013. 10:23 PM | Likes Like |Link to Comment
  • Is Gold Finished? [View article]
    It's not the only reason but the US does have many things going for it. Of course, that doesn't mean things can't get worse from here. Just saying the US has untapped non-inflationary economic potential.
    Feb 23, 2013. 11:54 PM | 1 Like Like |Link to Comment
COMMENTS STATS
1,138 Comments
1,556 Likes