Engineer

Is Gold Ready to Fly?

Great article Bill. I would add a similar big picture "fix" for capitalism that will never happen but I think needs to be said:

THERE ARE TOO MANY PEOPLE MAKING A LIVING OFF TRADING right now. There is very little value add to society in the process of trading.

The stock market is a secondary market driven by fear and greed. It absorbs too much of our attention, and too much of our capital all in excess of its only value add of price discovery. Aside from investing at the pre-IPO or IPO stage, when you make a trade in the stock market, you are merely circulating currency.

Real capitalism is when you deploy capital to add value to society (i.e. building a power plant). You are rewarded according to the risk you take and the value you bring to society.

I don't know how to fix this problem, or if it even possible. Personally, I am investing my surplus cashflow into my own businesses going forward, at modest returns based on the value they provide.