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Asset allocation question

BaleyBaley Posts: 22,658 ✭✭✭✭✭
it's earnings season, and tax season, and spring break, and I'm making money in every sector I'm participating in these past 2 years, EXCEPT PRECIOUS METALS, which have been flat to down for 2 years.

Is this a sign we should be selling stocks, my bonds, real estate, numismatic coins, other business enterprises, and buy gold, silver, and platinum bullion?

Liberty: Parent of Science & Industry

Comments

  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    Stick with the equities. Oh, and pick up some Bitcoin.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • BaleyBaley Posts: 22,658 ✭✭✭✭✭


    << <i>Stick with the equities. Oh, and pick up some Bitcoin. >>



    Why, are they hot Hot HOT like metals were TWO YEARS AGO? image

    Liberty: Parent of Science & Industry

  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    Is this a sign I should be selling my stocks, my bonds, my real estate, and my numismatic coins, my craft brewing situation, my other business enterprises, and buy gold, silver, and platinum bullion?

    I wouldn't change everything at once, no matter what is making money at the moment. If it ain't broke, don't fix it.image

    But, I'm still not buying any paper assets now.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭
    Diversification is best (Or so I hear).

    I have all my fiat in Beanie Babies, copper cents (Pre-1982) and Magic the Gathering cards image

    Ray
  • renman95renman95 Posts: 7,037 ✭✭✭✭✭
    Carbon Credits
  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    this thread has potential.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • guitarwesguitarwes Posts: 9,237 ✭✭✭
    Sell it all. "Precious Paper" just don't have the same ring to it.....
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
    Too many positive BST transactions with too many members to list.
  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    "Precious Paper" just don't have the same ring to it.....

    That's a worthy byline, especially for this forum.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • OverdateOverdate Posts: 6,902 ✭✭✭✭✭


    << <i>Stick with the equities. Oh, and pick up some Bitcoin. >>


    At $233 each, 7 bitcoins > 1 oz. gold.

    My Adolph A. Weinman signature :)

  • tneigtneig Posts: 1,505 ✭✭✭
    Bitcoin may be more in the speculative category right now, eh? Its opposite the concept of "holding your own PMs."
    Not that it may not be a bad investment....

    Throughout my adult life, when the stock market gets high, then higher, then breaks the records, we start to hear
    words like correction.... When that happens maybe metal will get a boost.

    PMs could have tanked far far worst.. The bloated pig may have puked a bit. Lets hope he starts feeling better.

    -Isn't it all a ponzi scheme underneath... and you juggle where you are at in it..
    COA
  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    Bitcoin and the Dollar are the same thing, except that Bitcoin is unregulated and the Dollar is over-produced.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    "bitcoin" is dutch for tulip

    The decline from democracy to tyranny is both a natural and inevitable one.

  • DorkGirlDorkGirl Posts: 9,994 ✭✭✭


    << <i>"bitcoin" is dutch for tulip >>



    image
    Becky
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>for posting thought provoking questions about Precious Metals.

    It's just that it's earnings season, and tax season, and spring break, and I'm making money in every sector I'm participating in these past 2 years, EXCEPT PRECIOUS METALS, which have been flat to down for 2 years.

    Is this a sign I should be selling my stocks, my bonds, my real estate, and my numismatic coins, my craft brewing situation, my other business enterprises, and buy gold, silver, and platinum bullion? >>




    Gold has been in a correction for 19 months. With that same logic it's about positioned as it was in July 1976. The stock market had been rallying hard for 19 months near all time highs. So was July 1976 the time to finally bail out on any remaining PM investments and go all-in on stocks? For those trading the markets at that time I'm sure the talk was that
    the stock market was going to continue to blastoff well above Dow 1,000 while PMs were dead forever.


    http://www.sharelynx.com/chartsfixed/USDJIND1950.gif ..............1970's Dow.

    http://www.chartsrus.com/chart.php?image=http://www.sharelynx.com/chartsfixed/GC1976btm.gif ............1970's gold.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    It's just that it's earnings season, and tax season, and spring break, and I'm making money in every sector I'm participating in these past 2 years, EXCEPT PRECIOUS METALS, which have been flat to down for 2 years.

    Is this a sign I should be selling my stocks, my bonds, my real estate, and my numismatic coins, my craft brewing situation, my other business enterprises, and buy gold, silver, and platinum bullion?


    Heh, weren't you the guy who is a proponent of portfolio re-balancing? You should be doing exactly as you suggest.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • sumrtymsumrtym Posts: 394 ✭✭✭


    << <i>For those trading the markets at that time I'm sure the talk was that
    the stock market was going to continue to blastoff well above Dow 1,000 while PMs were dead forever.
    >>

    Couldn't open your link, but I'm guessing what you're saying is that with DOW at > 14,000, the stock market over the past 40 years has wildly outperformed precious metals.
  • BaleyBaley Posts: 22,658 ✭✭✭✭✭

    Heh, weren't you the guy who is a proponent of portfolio re-balancing? You should be doing exactly as you suggest.image


    That's why I'm trying to get viewpoints; it was a serious question. I do follow an asset allocation model, and it is getting to be time to trim some winners and allocate the capital to the (relative) losers

    But if gold and silver are going to keep going lower (the charts do NOT look healthy to me) then I'd rather not buy them now (obviously)

    Liberty: Parent of Science & Industry

  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    10% for hookers & drugs.

    Diversify, diversify, diversify.
    Have a nice day
  • PokermandudePokermandude Posts: 2,709 ✭✭✭
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    That's why I'm trying to get viewpoints; it was a serious question. I do follow an asset allocation model, and it is getting to be time to trim some winners and allocate the capital to the (relative) losers

    But if gold and silver are going to keep going lower (the charts do NOT look healthy to me) then I'd rather not buy them now (obviously)


    The models only work in retrospect, and you have to follow them somewhat in order for them to work. The reason you'd rather not buy the metals now is the same exact reason that they are not looking attractive - they are heading lower (supposedly).

    I use a different model, the cost-averaging method. I'd rather not buy them now except for a couple of points - 1) cost averaging only works well if you actually practice it, and 2) buying is nice (in retrospect) when the price is lower.

    Chart watching is the same as reading a history book. There are certain truisms that can be learned, but the past doesn't predict the exact future. Sometimes, you gotta think it through as well.

    In my own case, I think that too much imaginary money is being created to pay off greedy banker's gambling debts and being stuck onto taxpayers. I also think that the world trends in global trade are running cross-current to our best interests and we aren't exactly playing it smart. I don't expect my opinion to be popular with mainstream stock market investors.

    Since there is more of them than there are people who think like me, I expect alot of gnashing of teeth before my metals realize their full potential. To put it succinctly, I think that I am right and that they are dead wrong - and that fundamentals are the reality, not money creation.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • yellowkidyellowkid Posts: 5,486
    No. I don't try and time the market but when a sector has had a good run I like to take some off the table.
  • BaleyBaley Posts: 22,658 ✭✭✭✭✭
    derryb
    Metalnut

    Posts: 16578
    Joined: Aug 2006
    Tuesday April 09, 2013 1:07 PM (NEW!)

    Stick with the equities. Oh, and pick up some Bitcoin.


    Turns out that was real good advice, thanks!
    held on and then turned it into gold

    image

    thanks again, useful commentary in the thread

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    Glad to be of assistance. However, you should probably have sold the bitcoin a bit earlier and sold the equities a bit later.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • cohodkcohodk Posts: 18,548 ✭✭✭✭✭
    I one had sold 100 oz of gold in April and bought bitcoin, then sold bitcoin to buy gold, he could now have upwards of 500 oz of gold.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    Not a bad two days to be 100% DSLV with the paper.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • bidaskbidask Posts: 13,834 ✭✭✭✭✭


    << <i>it's earnings season, and tax season, and spring break, and I'm making money in every sector I'm participating in these past 2 years, EXCEPT PRECIOUS METALS, which have been flat to down for 2 years.

    Is this a sign we should be selling stocks, my bonds, real estate, numismatic coins, other business enterprises, and buy gold, silver, and platinum bullion? >>

    It depends on how much you have allocated to each asset and how much risk your willing to take.........follow the simple maxim in asset allocation....rebalance, rebalance, rebalance.
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • BaleyBaley Posts: 22,658 ✭✭✭✭✭
    Wow, look at that, it's two years later and tax season again (ouch) and two more years of declining metals prices.. how about now? are metals ready to rebound, and the other stuff to crash?
    Has it already started?

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,108 ✭✭✭✭✭
    Stick with bitcoin and pick up some equities.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jmski52jmski52 Posts: 22,297 ✭✭✭✭✭
    two years later and tax season again (ouch) and two more years of declining metals prices..

    Yes, it's been 2 more years of declining metals prices. Correct.


    how about now? are metals ready to rebound,

    I don't know, but I'm getting ready to pull the trigger on a purchase. I'm just trying to decide which option to take.image


    and the other stuff to crash?

    I don't know about the other stuff. It could all crash and bring metals prices down along with it, or it could keep muddling through as long as the Fed doesn't get too frisky.

    Or.........the other stuff could indeed crash and spook a rush into the metals, depending on the effectiveness of the media spin at the time. Your thoughts?image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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