sundrenched

Nine Ways to Profit in 2009

You're doing well so far. I agree with most of your themes, but would recommend different trading vehicles for those who want to buy and hold. It's becoming well-known now that these leveraged vehicles only work well for holding periods of a few weeks. Personally I'm playing some of the same themes by selling calls, buying puts, and through plain old shorting.

Please keep us updated -- a year is an eternity in this market!

Gold: The Only Remaining Bubble?

I put in a sell order on my GLD holdings while the going is good after reading your article. It had been on my mind for the past 2 weeks. Everyone and his dog is getting in this game now, not because they want to own it at this price, but because they want to flip it on to a Greater Fool. Gold may well rise a lot further, but I doubt many will get out in time once the momentum goes the other direction, as always happens when the only reason for buying is that everyone else is buying.

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.