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Building wealth intelligently and patiently is the most logical and tested route to financial independence. That is my plan and so far, so good! (WARNING: Do your own due diligence and don't depend on me or anyone else on SA to offer sound investing advice. My recommendations are for... More
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  • There is NO COMMODITIES BUBBLE! 1 comment
    Nov 14, 2010 8:53 AM | about stocks: GOLD, CORN
    There is no such thing as a commodity bubble.

    There is, however, a dollar bubble.

    You can't print commodities with the stroke of a keyboard.

    You can't feed your family with dollar bills or build a building with dollar bills or power your vehicle with dollar bills.

    The dollar is not a store of wealth. If it were, then a house or a car would cost roughly the same in real terms as it did in, say, 1940 (gold, in dollar terms, is roughly the same price as 40 years ago).

    With BILLIONS of people in China, India, Brazil and the "Asian Tiger" nations moving from abject poverty to the working class they are going to desire more cars, beef, steel structure buildings, modern appliances and the other products that demand use of more and more commodities.

    Meanwhile, Mr. Bernanke is pouring TRILLIONS of new dollar bills onto the heads of people around the world. Each new dollar undermines the value of each old dollar.

    Commodities in a bubble?

    Hardly.
    Themes: gld, slv, c, bac, ko, mcd Stocks: GOLD, CORN
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  • Mike Arnold, CFA
    , contributor
    Comments (1823) | Send Message
     
    Just visiting this post now. I agree. I'm concentrated in real estate, commodity and foreign holdings. I like Dundee Corp (and all their affiliated entities) and European stocks like PRIS and VIVHY.

     

    Nice post.
    18 Oct 2013, 02:15 PM Reply Like
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