sundrenched

Peter Schiff: Outlook for the Gold Market

I'm reading his "little book" (a good read), and what you say has to be refined a little. One of his specific recommendations is to buy equities in developed nations that export commodities (Norway, Netherlands, Australia, New Zealand, Canada). Emerging markets are more speculative (political risk, etc.) and he recommends only limited exposure (10% if I recall correctly). Economies in such countries will benefit from the recovery in commodity prices that he predicts, and their currencies should also do well due to their strong export performance (except perhaps in the case of the Netherlands, which uses the euro).

On Dec 29 05:09 PM Sleeves wrote:

> Quick question. If the Europeans are doing the same as the Fed why
> does P. Schiff their currencies will fare any better than the Dollar?
> Why invest in European Equity?

Peter Schiff: Outlook for the Gold Market

Noop, this is a common misconception, but this money never existed, it was only an estimate of worth, not actual worth. The market cap of a company is the number of outstanding shares multiplied by the last transacted price, but the last transacted price would not be available to all shareholders if they tried to sell all at the same time.

Likewise, all this housing wealth that disappeared never really existed to begin with. I bought a house at 250k and at some point similar houses in my street were going for 450k, and now it's back at 250k, but that doesn't mean that I lost 200k and someone else walked away with it. I suffered a theoretical loss, but no money changed hands.

On Dec 23 09:50 PM BrucePile wrote:

> To the point about all the money lost in the stock markets causing
> an equal amount of deflation: all that money did not disappear !
> The market is a zero sum game; every dollar you make in the market
> comes out of some other participant's pocket on the losing end of
> a trade.