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1% return on commercial paper...what affect on the metals?.

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  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    """All assets are being pumped up in order to generate higher tax proceeds for gov.com - especially stocks. Low bond rates are intended to drive money into risk assets, (in addition to lowering the government's liability payments.)'''"

    Bernanke was quite open about his desire for investors to switch in to higher risk investments. I guess they are really higher risk now.
  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    Not worried at all. I have an allocation to stocks. At this level I'm rebalancing and taking some money off the table.

    If the market falls I will put money back in.

    You missed a huge bull market !



    I also missed the stock market crash in 2008. That huge bull market started from a trough and only happened because of Fed intervention. There was no economic recovery driving it. Of course, none of that matters if you are making money.

    The precious metals markets have been falling now for a few years.

    I've been putting money into the metals during this dip. My metals strategy is not much different than your stock investing strategy. My risk diversification is over time, which is probably as effective as your asset allocation strategy.

    You've missed a huge opportunity to get into metals cheap.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    You've missed a huge opportunity to get into metals cheap


    Huh? One can buy silver today at the same price as 6 years ago. Only thing missed was anguish, contempt and disillusionment.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Only thing missed was anguish, contempt and disillusionment. >>



    ...and that was just from the forum. image
  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    One can buy silver today at the same price as 6 years ago. Only thing missed was anguish, contempt and disillusionment.

    You can pick & choose your dates. I can pick & choose mine. I've never stopped accumulating metals (this time around) since 1998, and there's no compelling reason to think that it's no longer a good idea.

    Based on both fundamentals and relative values, you (and I, and everyone else - for that matter) should be buying metals right now. The fact that the Fed is heavily involved in pumping up the stock market pretty much invalidates any kind of meaningful analysis. Don't deceive yourself about that.

    All you're doing with stocks is running with the herd, and the Fed knows it quite well. Politically, the minute that interest rates are allowed to rise, TSHTF from all the good people who have actual retirement plans in the system. Which is exactly why they are manipulating so hard.

    I don't think that they can keep it going too much longer, but I could be wrong. Good luck to ya - either way.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bidaskbidask Posts: 14,017 ✭✭✭✭✭


    << <i>Not worried at all. I have an allocation to stocks. At this level I'm rebalancing and taking some money off the table.

    If the market falls I will put money back in.

    You missed a huge bull market !



    I also missed the stock market crash in 2008. That huge bull market started from a trough and only happened because of Fed intervention. There was no economic recovery driving it. Of course, none of that matters if you are making money.

    The precious metals markets have been falling now for a few years.

    I've been putting money into the metals during this dip. My metals strategy is not much different than your stock investing strategy. My risk diversification is over time, which is probably as effective as your asset allocation strategy.

    You've missed a huge opportunity to get into metals cheap.image >>

    Your not diversified if all you have is cash and precious metals.

    Guess I could buy metals now if I wanted too for more diversification....

    But don't want too
    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.




  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    It's called "averaging in" and yes it is a type of risk diversification. ** I should say, risk management.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,155 ✭✭✭✭✭
    Actually this discussion picked the dates, not I.

    Stop living in denial and realize that PMs have been terrible investments over the last 5 years in the face of what should have been favorable fundamentals.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • VanHalenVanHalen Posts: 3,994 ✭✭✭✭✭


    << <i>[...........The fact that the Fed is heavily involved in pumping up the stock market pretty much invalidates any kind of meaningful analysis. Don't deceive yourself about that.

    All you're doing with stocks is running with the herd, and the Fed knows it quite well. Politically, the minute that interest rates are allowed to rise, TSHTF from all the good people who have actual retirement plans in the system. Which is exactly why they are manipulating so hard.

    I don't think that they can keep it going too much longer, but I could be wrong. Good luck to ya - either way.image >>



    That's the $64,000 question. How long can this thing be strung out while maintaining the World's Reserve Currency and relative USD value?

    There is little doubt it can be run for a few more years, perhaps a decade. If those pulling the strings play their cards right? A quarter century is not impossible but I cannot see it being run nearly that long with what's behind it. Good luck to all of you as well. My guess is everyone posting on these boards has it better than 99% of the people who ever lived - even if we're not in America's Elite 1%. image
  • jmski52jmski52 Posts: 22,869 ✭✭✭✭✭
    Stop living in denial and realize that PMs have been terrible investments over the last 5 years in the face of what should have been favorable fundamentals.

    <sigh> It's funny that averaging in isn't accepted as a worthwhile strategy when metals are involved, but hair-trigger technical chart analysis of stocks, commodities, or bonds is considered smart.

    There's no denial that PMs haven't yielded what stock have yielded in the past 5 years. I'll give you that much. But favorable fundamentals? What fundamentals are you talking about? The Fed is more fundamental to the markets than any other variable at this point. And you're correct - I don't agree with what they're doing. There's no emotional influence, and there's no denial either, believe it.

    I'm on your side anyhow cohodk. I hope you do well.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Actually this discussion picked the dates, not I.

    Stop living in denial and realize that PMs have been terrible investments over the last 5 years in the face of what should have been favorable fundamentals. >>



    I would take it to the next step and suggest that metals/commodities, equities and real estate have all been poor five year investments........so far.

    In the face of a five fold increase in the money supply, a successful investment in that 5 year window should have quintupled. None have, at least as an asset class.

    The next few years will be catch up time, at least when measured against dollars. With a backdrop of huge consumer inflation (including may $10 bags of potatoes) the question is not what is in the rearview, but what assets will prosper and protect the holder.

    Soaring rates may in fact hold back metals and real estate for while, but stocks always take a hit in a high interest rate world.

    The insidious part is by design, that with few exceptions, we all get whacked in the money for nothing world. The winners pay cap gain taxes even though treading water and losers are getting hit twice. Once in nominal terms and second in inflation adjusted terms.
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