I want to repeat again: I really like Jim Cramer. He made me a lot of money and I hope for more. But sometimes he falls in love with a stock, or a person, or an asset class and his view is clouded.
Great example: yesterday I watched webcast on thestreet.com. The headline was: "Gold: Dead Cat Or Raging Bull". I was hoping for in-depth analysis of gold as an investment. Boy, was I wrong!
It was not a discussion. There was a bunch of gold bugs on this show, Cramer is the least shameless of them. Each one pimped gold as the only way to avoid hyperinflation which is supposedly created by Central Banks of the world. There was not one skeptic on this show, never mind outright gold bear.
Their arguments and my response:
A. Central Banks are printing money and it will cause hyperinflation
R. Inflation expectations are discounted by market at 1.5% for the next 10 years. In other words, Central Banks are not printing (and what's more important, are not going to print) enough money for normal 2% inflation.
A. World is going to catastrophe, gold is the only asset in such case.
R. If so, food, arable land, weapons and ammo are much better investments
A. Central Banks are manipulating markets and one day it will end with everybody buying gold.
R. Never fight the Fed. Everybody who did ended miserably.
To Jim Cramer: discussion means collision of different points of view. When you have only one point of view on your show, it's not a discussion.
Gold is down again, now below $1230.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.