There Is No Alternative? That's The Dumbest Thing I Ever Heard [View article]
Yes, I believe history cycles, as economics does, as nature does. I consider cycle theory a valid investment tool. If you don't study the cycles of history, what are you listening to? The crap on MSNBC?I wouldn't be surprised to see WWIII in the middle east within the next few years. Politicians have used wars to not only get us out of recessions, but also to take the public's eyes off domestic troubles. But the United States' interventionist policies seem to be making us more enemies than friends plus how much more debt can we take? I am afraid that the next phase of the business cycle is way, way down.
5 'Cheap' Countries Using Price/Intrinsic Value [View article]
Thank you for this excellent article. Would you consider expanding it to list additional countries? I would like to see these rankings compared against the freedom index and demographics for each country. That would provide much information for additional research by investors. Thank you again for the article.
Looking at the chart of the Dow-gold ratio, if the ratio goes anywhere back down toward 2, then is the Dow going to fall substantially, or is gold going to rise substantially, or both? With politicians willing to print dollars to sustain the economy and buy votes, inflation is eventually in our future. I think I would put my money on gold.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
As a CPA for thirty years, I understand the difference between a Roth IRA and a traditional IRA. I am just saying that a young person needs to consider the future political considerations before deciding on which retirement plan they use. I think that both the 401(k) plans and the traditional IRAs will be left alone, because the distributions will eventually be taxed. But in the era of high deficits, I am not sure that the government will allow the current tax advantages of the Roth IRAs to stand. I do think that a Roth IRA is an excellent choice for a young person (or a person of any age with earned income) under current tax laws. But I do think a young person needs to consider the implications of the deficit and what changes the government might make in the name of deficit reduction. For a while at least, a young person might consider keeping their investments out of a retirement plan and pay taxes each year. It might be worth paying a bit more in additional taxes in order to have some flexibility in moving investments for the next few years.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
My only concern with a Roth IRA is that we have no guarantee that a future administration will keep the government's word about tax deferral. In order to save the system, would a future administration either tax future distributions (think taxation of social security benefits for retirees) or offset your IRA distributions against social security or other government benefits? After all, you have saved and built a nest egg while the other less fortunate are entitled to the benefits. Perhaps it is best to pay the taxes now rather than the higher tax rates that will come in the future (to cover the deficit) or risk an even higher penalty through taxation and offset. Do you trust the politicians to keep their word or to screw the productive to stay in office?
Thank you for an excellent, thought-provoking article. So many people consider demographics of the emerging markets without considering the freedom/rights issues. These are also the issues to consider if anyone wants to invest in the United States over the next twenty years. Thanks again.
The Case Against The Case Against Gold [View article]
Excellent article.
While stocks, bonds, and currencies are not intrinsically worthless, they can all go to zero. In the last hundred years or so, since the creation of the Fed, the dollar has lost about 98 percent of its purchasing power. Can the last two percent take much longer? At least with gold, the central banks can't create it out of thin air so the politicians can buy votes. Right now, most politicians except Ron Paul fear gold. Wrong. When the American people realize what has been done to them, the politicians will be fearing lead. Gold has not and will not ever go to zero.
Keep writing, Captain, And may God give you strength to keep writing for years to come. As long as we have these cowards in Congress (both parties) who will enslave our children and grandchildren with their reckless spending so they can get reelected, we need people like yourself who will keep on telling it like it is. We just lost Bob Chapman, so others are going to have to rise up and speak the truth. Proclaim the truth, pray, and vote third party. And maybe our grandchildren won't live in a third world country.
Is it just me? Zuckerberg creeps me out. I don't trust him; I very much distrust his company and what they will do with the data they have access to. IMHO, future economic historians will refer to Facebook and "tulip mania" in the same sentence.
Inflation And The Fallacies Of Long-Term Equity Investing [View article]
Untrusting Investor raises the real concern: how are citizens going to keep from getting screwed when the government, i.e. Central banks and their cronies are against us.
One key is diversification: buying different asset classes, so that means hard assets and commodities as well as dividend paying stocks.
But the key to profit is buying them during the correct time frame, as discussed above. Has anyone on SA looked at the Dow/gold ratio and suggested using this as a buying tool? Since gold is currently cheaper, wouldn't now be the time to load up on gold and hard assets?
Why You Shouldn't Automatically Reinvest Dividends [View article]
Tim, unless you have your heart set on law school, I hope you will consider grad school in business. There is a tremendous shortage of business doctorates right now, so the opportunities and salaries are growing for a young PhD. You have such an enthusiasm for finance, you might enjoy a career in classroom and research. I believe you would enjoy teaching future generations about finance and investing. Best wishes and thanks for the articles.
A Simple Formula For The Fair Price Of Gold [View article]
In trying to visually extend your chart into the future, it looks to me that the Dow/gold ratio could easily go to 1.0 or below. Add to this the politicians who would gladly inflate our fiat currency into oblivion so they can get reelected as long as possible....I keep on coming back to the fact that the rascals in Washington can't print gold and silver.
Why aren't gold and silver soaring? This Congress isn't going to do anything....they are all greedy socialists who must keep the entitlements flowing (to the rich and the poor) in order to get re-elected. Then when hyperinflation comes, they can blame others. Remember the 1970's when "greedy businesses" were blamed for inflation? Who is going to get blamed for the next Weimar Republic? Congress will find someone else to blame. I hope you are listening to Bob Chapman, Jim Rogers, Ferfal, and others, to get ready for the economic calamity which is coming. May God help us and forgive us for what we have allowed to happen to this country.
A Look At Gold Prices From 1800 To 2011 And 10-Year Returns [View article]
Some thoughts:
1. Currently I believe gold is the only valid long-term asset because it should hold it's value against an increasingly depreciating currency. (QE3, anyone?)
2. Gold doesn't pay dividends but gold equities do. A simple break-even analysis shows us that once fixed costs are met, even small increases in the sales price can mean big changes to the bottom line.
3. In a sense, the price of everything is set by speculation. Over time, the free market will act and set the price of gold accordingly. As long as our politicians print money, I will go with the gold.
4. As to older investors, would they rather have a CD paying an interest rate lower than the rate of inflation, backed by a bankrupt federal FDIC, or dividends in a mining stock backed by gold?
I'm not an investment adviser, just a dumb old accountant. But for now, I will forego standard stocks and bonds and go for the gold!
The debt-ceiling deal passes the House, 269-161. The plan is a two-stage raise of the debt ceiling by $2.4T while cutting spending by about $2.7 trillion over 10 years. The Senate may begin debate tonight but is likely to vote on the deal tomorrow. (MW) Updated: The Senate will vote at noon tomorrow. [View news story]
What a farce, an absolute charade. I don't know if I am madder at the democratic fools or the republicans who sold us out. This is not a party issue: if they are incumbent, throw the bums out. We are watching our country turn into a third-world nation right before our eyes. Our children and grandchildren are already saddled with a debt they cannot repay. At best, we lose our economic supremacy. At worst, hyperinflation and loss of liberties (Germany after World War I.). My only consolation is that if these cretins don't get what they deserve in this life, they will in the next. Politicians just reaffirm my belief in the necessity of hell.
There Is No Alternative? That's The Dumbest Thing I Ever Heard [View article]
5 'Cheap' Countries Using Price/Intrinsic Value [View article]
Trouble Ahead For The Gold Bears [View article]
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
China Vs. Non-BRIC Asian Markets [View article]
The Case Against The Case Against Gold [View article]
While stocks, bonds, and currencies are not intrinsically worthless, they can all go to zero. In the last hundred years or so, since the creation of the Fed, the dollar has lost about 98 percent of its purchasing power. Can the last two percent take much longer?
At least with gold, the central banks can't create it out of thin air so the politicians can buy votes. Right now, most politicians except Ron Paul fear gold. Wrong. When the American people realize what has been done to them, the politicians will be fearing lead. Gold has not and will not ever go to zero.
Silver Forecasts: Truth Vs. Noise [View article]
Much Ado About Nothing [View article]
Inflation And The Fallacies Of Long-Term Equity Investing [View article]
One key is diversification: buying different asset classes, so that means hard assets and commodities as well as dividend paying stocks.
But the key to profit is buying them during the correct time frame, as discussed above. Has anyone on SA looked at the Dow/gold ratio and suggested using this as a buying tool? Since gold is currently cheaper, wouldn't now be the time to load up on gold and hard assets?
Any thoughts?
Why You Shouldn't Automatically Reinvest Dividends [View article]
A Simple Formula For The Fair Price Of Gold [View article]
After the congressional supercommittee fails to come up with a deficit-cutting deal, President Obama vows to veto any measure designed to override automatic budget cuts caused by the failure. [View news story]
A Look At Gold Prices From 1800 To 2011 And 10-Year Returns [View article]
1. Currently I believe gold is the only valid long-term asset because it should hold it's value against an increasingly depreciating currency. (QE3, anyone?)
2. Gold doesn't pay dividends but gold equities do. A simple break-even analysis shows us that once fixed costs are met, even small increases in the sales price can mean big changes to the bottom line.
3. In a sense, the price of everything is set by speculation. Over time, the free market will act and set the price of gold accordingly. As long as our politicians print money, I will go with the gold.
4. As to older investors, would they rather have a CD paying an interest rate lower than the rate of inflation, backed by a bankrupt federal FDIC, or dividends in a mining stock backed by gold?
I'm not an investment adviser, just a dumb old accountant. But for now, I will forego standard stocks and bonds and go for the gold!
The debt-ceiling deal passes the House, 269-161. The plan is a two-stage raise of the debt ceiling by $2.4T while cutting spending by about $2.7 trillion over 10 years. The Senate may begin debate tonight but is likely to vote on the deal tomorrow. (MW) Updated: The Senate will vote at noon tomorrow. [View news story]