Options
Economics101- Please Help (And Precious Metal)
dennis1219
Posts: 267 ✭✭✭
I can’t wrap my brain around any of this. Yes, I have some stocks, as any person looking to have a diversified portfolio should... but:
Pandemic
Riots-Looting
High Unemployment
Stimulus and printing $$$
And the stock market over 26K. I need
Someone to make sense of all of this. What is propping up the market, and how is gold not 2K and silver not 30+.
1
Comments
1.The jobless numbers this AM are only 2.7 millon. The "experts" predicted 9 millon in job loses.
The FED GOV is figuring out who the Legitimate protesters are and who the criminal element within the Legitimate protesters are. Fed GOV is starting to concetrate on the criminal element and leaving the legitimate protester to protest as it is their American god givin right to do so.
the government is pumping trillions into the economy. trillions with a t
and I urge everyone to stay away from the protest talk. several people were just bammed on a protest discussion thread. it is a topic on the modulator watchlist
There are many things going on right now....However, I believe the main factor is the confidence the market has in a great recovery in a reasonably fast time period.....We shall see....Cheers, RickO
The Fed is buying stocks and bonds and not much gold.
The stock market doesnt care about yesterday or today. It cares about next year.
Knowledge is the enemy of fear
and the thought is we may be out of it next year. (yeah right)
Regardless of what most people think of various asset classes, most of them are highly correlated. With the $T's of stimulus and the "ungodly" amounts of money that get funneled into retirement assets every month, almost everything is forced to go up. Amazon just issued 10-year corporate bonds at 0.4% interest. Economic theory is just on hold for now (and has been for a while).
Stocks are going up because people are putting money back in, Eco-101 supply and demand.
The doomsdayers try to say some sort of manipulation is occurring. Then the same end of the world bunker crew will deny manipulation when PM prices increase only when they decrease is manipulation occurring. Bassakwards but I guess the conspiracies keep us entertained.
The whole worlds off its rocker, buy Gold™.
buy ink, lots of it.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Buy stock, lots of it.
too much ink already
buy ink stocks.
Better yet trade ink gold and silver.
The whole worlds off its rocker, buy Gold™.
Stocks are going up because the Federal Reserve is the buyer of first resort. And they've got very deep pockets. The sleepy investors think this is real demand and are falling into the FED's "buy" trap.
Keep an open mind, or get financially repressed -Zoltan Pozsar
The world has a segment of people with tons of cash, who are scurrying around about where to stash it. The stock market is based on promises, the rest looks like losers.
Here's a warning parable for coin collectors...
Especially companies that make red ink.
Worry is the interest you pay on a debt you may not owe.
The doomsdayers try to say some sort of manipulation is occurring. Then the same end of the world bunker crew will deny manipulation when PM prices increase only when they decrease is manipulation occurring. Bassakwards but I guess the conspiracies keep us entertained.
Yeah, if you really think that the court cases showing manipulation were simply a figment of imagination or some sort of mass delusion, just keep telling yourself that nothing is being manipulated. Keep that head of yours buried in the sand.
Acknowledging Reality doesn't pass the threshold of a doomsday scenario, either. Making a simple truth into a conspiracy theory is plain dumb. When you mock the people who point out the corruption in the system, it tells me that you are in your own sort of denial as long as you think that it's all fine & peachy.
I knew it would happen.
Right before metals go parabolic they seem to have a long stretch of just up and down. Like the market is trying to shake free the weak and scared hands. And just when you least expect it and are considering giving up...BAM! Parabolic to Pluto and beyond.jmho
Hang in there dude. We're all long over due for pay day.
Come on. You had a 10,500 point drop in the Dow. Then an 80% retrace of that drop from 18,250 to 27,300. Extremes tend to rebound the other way once the washout or euphoria is complete. Next question is how much of that 2 month 9000+ point rally will be retraced? 38, 50, 62, 78%? Simple TA that followed the govt injecting many $TRILLs into the hands of bankers who could then goose the markets.
There's really no "science" called economics. It's a behavorial "study" that shows how people and money chase after things based on various factors. No laws. No perfect logic...or any logic for that matter. But cycles and TA do seem to show a consistent pattern. And with the FED and Banksters tossing $TRILLIONs around, they decide where the market goes to in the short term.
MSFT, AMZN and APPL long term and chill. That's what I am trying to do.
The Cloud is our friend until it isn't....Skynet Sarah Conner.
There's a LOT of wealth chasing momentum, low risk & liquidity at different levels. The more you know, the more you realize you don't know.
Momentum is great until the music stops. TOO LATE
Risk is acceptable until you completely forgot something. TOO LATE.
Liquidity is always present until it isn't. TOO LATE.
People will always need to eat, be safe & stay warm. When things get too complicated, go back to the basics.
Food tastes better, too. After quadruple bypass, I asked the doctor about my diet. He said , " if it tastes good, spit it out ! "
Some recently created fundamentals to ponder.
"The US economy (consumers) right now is like a jumbo jet that’s in a steady glide after both its engines flamed out. In about six weeks, it will likely crash into the side of a mountain."
The "Flubug QE Money Shower" and its temporary restraints on rent, mortgage payments and other debt is set to expire around July 1. Two options: (1) continue it indefinitely like all the QE before it or (2) let it expire at the risk of a very unhappy already unhappy population that just might take to the streets to vent their disapproval. (I suspect the Magic Money Tree will continue to shed "leaves.")
Either way, "Get Gold."
Keep an open mind, or get financially repressed -Zoltan Pozsar
Hard to argue with that article derry... I'm not looking forward to the next 6 months.
Click on this link to see my ebay listings.
According to Pater Tenebrarum from the Acting Man blog, writing here under the pseudonym "Trotsky:"
It is the 'monetary demand' component of gold, and not the jewelry or industrial components, that drives the price of gold. He describes this monetary demand as "the degree of reluctance of the current owners of gold to part with their gold at current prices." Gold rises and falls based on monetary demand.
And Mike Shedlock (MISH) continues with "Gold's monetary demand is a function of faith in central banks" using an older but effective chart:
Keep an open mind, or get financially repressed -Zoltan Pozsar
Keeping the U.S. equity markets propped up is the goal. Washington, D.C. and The Fed are bought and paid for by a select few who care nothing about of our nation's future.
There will be another $10 trillion in debt and Fed QE before this (COVID) thing is over in 2022. Our national debt + Fed balance sheet will be close to, if not over, $50 trillion in 3 years. We're at $33 trillion right now and going parabolic.
We're in the second inning of a nine inning game. Hold on.