Why buy gold when stocks are returning better?

MsMorrisine

why buy stocks if they tank? If the market has a correction, will gold rise?

(help me out here, I'm looking for a catalyst.)

(NFLX just missed big time)
(i don't think DB Germany will fail, and if it does then gold won't fly high)

thefinn

Really? See 1989, 2000, 2008...

MsMorrisine

what looms now?

no .com
no housing bubble
no inflation craziness

derryb

debt bubble; throw in a wee bit of greed and corruption

DB will light the financial industry fuse once again.

MsMorrisine

DB USA is in trouble, not DB Germany

MsMorrisine

and the debt bubble won't pop in this decade.

Timbuk3

!!!

derryb

@MsMorrisine said:
DB USA is in trouble, not DB Germany

DB is Germany's biggest lender. They have other problems but that alone is a very big problem.

jmski52

The question is, "what happens to stocks as the Fed de-leverages with quantitative tightening?"

I am skeptical that they will really go so far as to take away the punchbowl, but it seems that demand for US sovereign debt is one of the issues. As Martin Armstrong points out, it is the hunt for yield, worldwide.

If there is a liquidity crisis, what do you think will happen to all assets (including stocks)? Italy is in trouble now and it's not entirely about Deutches Bank.

So, why wouldn't you continue to stack?

OPA

@thefinn said:
Really? See 1989, 2000, 2008...

????
And each time the market has rebounded at higher levels. PM's are just another asset class & should be handled as such. They to will rebound

Kkathyl

84% of stock growth on this run is contained in only 4 stocks. That’s insane. Amazon’s google FB. All tech companies. Durable goods and other indicators say down 2-3% since January. Banks are in panic and trying to pump it back by expanding credit. We been here before. Good time to buy bank stocks JP Morgan etc for about maybe 3-4 months or so because bargain prices and will go up in short run. Conditions eraly familiar to last big downturn/ crash. But hey I might be paranoid.

carew4me

USLV at 52 week low

jmski52

Just because you're paranoid, it doesn't mean that they're not out to get you.

TwoSides2aCoin

We must stack ! Paper , plastic, metal and cryptos.

ricko

Balance... everything in moderation.... Cheers, RickO

cohodk

@Kkathyl said:
84% of stock growth on this run is contained in only 4 stocks.

Can you please quantify what it is exactly that you mean?

cohodk

@jmski52 said:
Just because you're paranoid, it doesn't mean that they're not out to get you.

Ones biggest foe is himself.

OPA

@cohodk said:

@Kkathyl said:
84% of stock growth on this run is contained in only 4 stocks.

Can you please quantify what it is exactly that you mean?

But it must be true...it's posted in every tabloid on the internet.

Kkathyl

if you look at the stock market gain we have seen since the last election (the run) you can pretty much take the Tech company stock gain and see it is basically all of it. so we have a concentration that is in one sector. Durable goods is looked at as measurement of how good the economy really is doing. ( Buying cars, luxury items boats) that is not doing well. So average day folks are either in debt or just getting by but that is not good for the banks. They are worried and started lending out again. Prop up the car industry and other things. Banks took a beating but everyone was put to sleep after last stress test. Now they are up to old habits to try to make thing move. 7 year car loans you name it.

But I could be wrong.

davidk

@MsMorrisine said:
why buy stocks if they tank? If the market has a correction, will gold rise?

(help me out here, I'm looking for a catalyst.)

(NFLX just missed big time)
(i don't think DB Germany will fail, and if it does then gold won't fly high)

Why buy apples when you can buy chicken?

blitzdude

Enjoy your unlimited paper printing. I'll stick with real assets. History always repeats.

MsMorrisine

we need some action within the month

these $10/day drops are killing me

OPA

@Kkathyl said:
if you look at the stock market gain we have seen since the last election (the run) you can pretty much take the Tech company stock gain and see it is basically all of it. so we have a concentration that is in one sector. Durable goods is looked at as measurement of how good the economy really is doing. ( Buying cars, luxury items boats) that is not doing well. So average day folks are either in debt or just getting by but that is not good for the banks. They are worried and started lending out again. Prop up the car industry and other things. Banks took a beating but everyone was put to sleep after last stress test. Now they are up to old habits to try to make thing move. 7 year car loans you name it.

But I could be wrong.

"Year to date best performing sectors"

https://csimarket.com/screening/performance.php?days=ytd

cohodk

@Kkathyl said:
if you look at the stock market gain we have seen since the last election (the run) you can pretty much take the Tech company stock gain and see it is basically all of it. so we have a concentration that is in one sector. Durable goods is looked at as measurement of how good the economy really is doing. ( Buying cars, luxury items boats) that is not doing well. So average day folks are either in debt or just getting by but that is not good for the banks. They are worried and started lending out again. Prop up the car industry and other things. Banks took a beating but everyone was put to sleep after last stress test. Now they are up to old habits to try to make thing move. 7 year car loans you name it.

But I could be wrong.

You didnt really quantify it. But I can help. AMZN has added about $400 billion to its market cap this year. That increase alone would place it in the top 10 of most valuable companies. That, however, does not mean the markets would be down if not for the appreciation of a few stocks.

Today, for example, nearly 5% of the SP500 hit new 52wk highs. Here are the sectors and industries of those companies.

Another way to look at this..... about 145 of the 500 companies in the SP500 that are up more than 10% year to date. How does that compare to our little contest in another thread?

Like OPA stated, the media likes to run these little stats as headlines. Learn the markets. Dont let the markets learn you.

Kkathyl

Good to dig deeper and look at names and value by company. I will follow the big moves while it happens not after too late. Don’t have to be greedy to make good returns. I still like metals. Will always put a chunk in metals.

cohodk

@Kkathyl said:
Good to dig deeper and look at names and value by company. I will follow the big moves while it happens not after too late. Don’t have to be greedy to make good returns. I still like metals. Will always put a chunk in metals.

Proper asset allocation is important, metals are part of that.

Unknown

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MsMorrisine

dollar index up large again today

derryb

@MsMorrisine said:
dollar index up large again today

Result of China’s currency countermeasures against U.S. steel, aluminum duties.

derryb

@MsMorrisine said:
what looms now?

no .com
no housing bubble
no inflation craziness

debt. lots of it.

mariner67

@ricko said:
Balance... everything in moderation.... Cheers, RickO

I’m all for moderation....as long as there is LOTS of it!

Dave99B

Spread your $$$ around.....stocks, bonds, gold/silver, and real estate. Diversify. Works well over time.

Dave