Send Message
View as an RSS Feed
  • California gets its first upgrade from S&P since 2006, the agency hiking the rating on the state's general-obligation bonds to A from A-. "The economic expansion is gaining positive momentum," and the approval of higher sales and income tax rates "positions the state to capitalize on burgeoning economic activity." S&P should ask Phil Mickelson about that one.  [View news story]
    Most Californopeans dont have earth quake insurance. If the big one comes, or more like when the big one comes, most people will be royally F'd.
    Jan 31, 2013. 11:18 PM | Likes Like |Link to Comment
  • Is Amazon Expensive? Not To Me  [View article]
    Selective confirmation bias bitchez!!
    Jan 31, 2013. 11:13 PM | Likes Like |Link to Comment
  • Silvercorp Takes Actions, Including A Share Buyback, To Counter Its Recent Decline  [View article]
    With regard to why SVM is in GDXJ that isnt really that unusual. Even ETFs which claim to to be purely of one sector typically mix things up with investments that are also highly correlated to that sector. GDXJ actually has a few primary silver miners in their holdings.
    Jan 31, 2013. 11:11 PM | Likes Like |Link to Comment
  • 19 Things I Like About Dividends  [View article]
    Agree with everything, though I am still a bit upset dividends are in essence triple taxed, while capital gains are only double taxed.

    For example company X pays its dividends after its corporate tax. Then I buy shares of company X after paying my own personal income taxes. This results in me being able to buy less shares. Then I pay tax again when I actually get the dividend. Yes, you can eliminate one of these by holding them in an IRA or Roth IRA, but by doing that you also potentially eliminate the ability to credit back foreign dividend taxes which is notable since many of the best div payers are non-US companies. Either way it seems like overkill to punish someone through triple taxation.

    I realize my comment doesn’t actually critique or add value to the author's points. I just wanted to complain about taxes.
    Jan 31, 2013. 02:47 PM | 4 Likes Like |Link to Comment
  • Amazon's Growth Is Shutting Down  [View article]
    The herd effect is powerful as we have seen with APPL, and well, every other bubble in our lifetime.... Currently the herd is giddy about AMZN, but once the first few herd members exit, expect a stampede.
    Jan 30, 2013. 12:09 PM | 4 Likes Like |Link to Comment
  • Busting 3 Myths About Gold (And The Bull Case For It)  [View article]
    To Macro Investor this is perfectly normal behavior that warrants no further questioning. I mean why wouldn't it take 7 years to deliver an amount of gold that takes no more room than a typical a semi-trailer and could be safely transported in one shipment via cargo ship?
    Jan 30, 2013. 12:00 PM | 5 Likes Like |Link to Comment
  • Investors Beware - The Misplaced Infatuation With Gold Could Cost You Dearly  [View article]
    First not sure where you got your info on the stock return or how that was calculated. It looks quite a bit different than historical returns I have seen. A lot depends on how one calculates “total real return.” Because if you are simply relying on index funds, then that doesn’t adequately capture the companies who go bankrupt and are then removed from the index.

    Second, our real debt here in the US is many times higher than the actual official debt. Some estimates tally up our unfunded liabilities at $86 trillion. That is trillion not billion. That is net present value too, so that is what we would need to invest today right now, at a reasonable return, in order to meet all the promises we have made. http://on.wsj.com/WMWTIs So if gold is a reaction to uncertainty, then I can say quite easily that never in our country’s history have we been this indebted by future unfunded liabilities and the uncertainty that is going to accompany it. Do you think we are going to pay that off? What do you think this will do the stock markets when we can’t? What will the baby boomers who can’t meet ends meet do when their $86 trillion in promised benefits has its purchasing power inflated away? I know one thing they will most likely do, they will sell the only appreciating liquid asset most of them have just to get by: stocks in their 401(k)s and IRAs. How the market will react to a generational mass selling, I will let you conjecture.

    Lastly you are incorrect on the return about gold. Do you know the saying about the US dollar being “as good as gold?” That comes from the fact that it was backed by gold and exchangeable on a fixed basis at one time, and thus that saying was literally true. So the real return on gold would be the interest from a basic savings account over 200 years. Because since gold was synonymous with money, you could deposit your dollars/gold, have it loaned out through the normal mechanism of bank operations and earn an interest rate on it far greater than the near zero percent now. Then at the end you could cash all your dollars out for gold for that same fixed price.

    Basel III recently made a major changes in the status of gold. Banks can now use it as a Tier 1 asset and for the first time in a long time, gold is reasserting itself as money. Thus the above example of the real return of gold being the interest you can charge for loaning it out is slowly coming back to truth. http://seekingalpha.co...
    Jan 29, 2013. 01:49 PM | 3 Likes Like |Link to Comment
  • Amazon Is On Fire  [View article]
    If something is "on fire" doesn't that mean it will eventually burn down and be nothing but ashes? Just saying...
    Jan 28, 2013. 01:32 PM | Likes Like |Link to Comment
  • Amazon Should Post Strong Results, But Sales Tax Impact In Question  [View article]
    As we have recently seen from AAPL, nothing defies gravity forever. Yet AAPL was in about 100 times better financial shape than Amazon.
    Jan 25, 2013. 03:25 PM | Likes Like |Link to Comment
  • Is Silvercorp In The Midst Of A Bear Raid?  [View article]
    Like many of you I don't believe Mr. Little's accusations either. Too many holes in his story which have been debunked over and over.

    But the point is there is only one way he can hurt you: if you panic and sell in these moments. Unless you absolutely need the cash for immediate needs, then sit back, breath, and lift your finger away from sell button. By doing this he loses since his short position is costing him interest just to maintain. And unless he gets a sizable dip in the share price from his shenanigans, he will lose money.
    Jan 24, 2013. 03:36 PM | 6 Likes Like |Link to Comment
  • Mongolia: Fast Growing Economy, Evolving Investment Climate  [View article]
    Remember in the 90's how everyone was talking about the "hydrogen economy" that was about to take off and would magically solve all of our energy problems?

    The hype today around "invest Mongolia" has a similar ring...
    Jan 17, 2013. 01:10 PM | 1 Like Like |Link to Comment
  • The formerly hawkish Minneapolis Fed chief Kocherlakota stakes out his position as the most dovish of the FOMC. He says current policy isn't easy enough and calls for the Fed to lower its unemployment rate threshold - the trigger for tighter policy - to 5.5% from 6.5%. The speech is worth the read - an insight into the thinking of PhDs who believe tweaking a "communications policy" or altering some level of reserves can guide a $16T economy to the exact point they wish it to go.  [View news story]
    We should aim for a negative unemployment rate, hah.
    Jan 15, 2013. 01:48 PM | Likes Like |Link to Comment
  • The Young And Restless: The Amazon 'Confusion' Continues  [View article]
    If I recall 1999 and 2007, things usually go to crap right after there is a lot of talk about how "traditional valuation methods" no longer apply....
    Jan 15, 2013. 10:54 AM | 4 Likes Like |Link to Comment
  • Patience When Investing Gets You The Big Candy Bar  [View article]
    Your article is contradictory. You start off touting the virtues of patience, cite an example with JNJ and how it’s better not to react immediately on events, then conclude the article by saying that if only you had cash, you could’ve reacted immediately to the flash crash.

    You don’t know it’s a flash crash until it comes back up, it is only a “flash crash” in hindsight. Otherwise if you are there in the moment watching it tank and reacting to that you are basically reacting to events and nothing else. How is that any different than buying in reaction to events, like the JNJ example you disparaged earlier in your article? Basically sounds like what you are saying is patience is good if waiting is beneficial, otherwise it’s bad. And of course you only know those things afterwards.
    Jan 14, 2013. 02:44 PM | 3 Likes Like |Link to Comment
  • I Put Borders Out Of Business, Target Is Next  [View article]
    Why do people go to coffee shops where it's noisy and there are other people there, only to engage in a solitary activity like reading or using your tablet or laptop?

    Seems lame to me. I'll stay at home if I want to read.
    Jan 14, 2013. 02:34 PM | 1 Like Like |Link to Comment