tag:blogger.com,1999:blog-6062751687592413583.post8860782445342090519..comments2024-03-26T21:56:51.634-07:00Comments on World of Finance.: Longer Term View.World of Financehttp://www.blogger.com/profile/14109552944903875871noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6062751687592413583.post-30088851261638038372012-04-22T14:49:19.907-07:002012-04-22T14:49:19.907-07:00Thanks.Thanks.World of Financehttps://www.blogger.com/profile/14109552944903875871noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-72144771853658094092012-04-22T14:47:41.451-07:002012-04-22T14:47:41.451-07:00You are most welcome with your comments. After all...You are most welcome with your comments. After all, this is a forum for exchange of ideas.World of Financehttps://www.blogger.com/profile/14109552944903875871noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-91934448845089518672012-04-22T06:32:50.840-07:002012-04-22T06:32:50.840-07:00SPY Versus SPX
http://blogs.decisionpoint.com/cha...SPY Versus SPX<br /><br />http://blogs.decisionpoint.com/chart_spotlight/2012/04/spy-versus-spx.htmlrobohttps://www.blogger.com/profile/12733708616712919909noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-85472975514220779132012-04-22T06:27:07.111-07:002012-04-22T06:27:07.111-07:00Correlation to gold is not arbitrarily chosen, gol...Correlation to gold is not arbitrarily chosen, gold is a thing that preserves value (preserves purchasing power) over long run. <br /><br />For example, oil priced in gold over last 50 years:<br /><br />http://4.bp.blogspot.com/-mm6aTkZHIR4/T1_HzfmnC2I/AAAAAAAAAAc/9297YeFELBE/s1600/oilgold.jpg<br /><br />I can't store my lifetime consumption of oil in my home yard, but I can use gold as a proxy to achieve that. Of course, not by buying gold at a single point in time, in which there is a chance that it's temporarily overpriced (as it might be now).<br /><br />I agree that US$ is to rise dramatically at some point, but that can't last, IMO. US debt (and deficit) just can't possibly be repaid with strong dollars, so they will print and devalue as needed. Dollar strength is to be a short term trading play, possibly bigger play than in 2008, but, IMHO, it won't be a good long term position.<br /><br />Excuse me for long, time consuming comments. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-19690467478356824572012-04-21T17:39:22.580-07:002012-04-21T17:39:22.580-07:00My apologies. I have not been able to articulate m...My apologies. I have not been able to articulate my answer. What I wanted to say is, this kind of correlation has no meaning. For e.g , we can draw a correlation between SPX and Apple and conclude that SPX is losing value vis-a-vis Apple. Each assets class has its role to play in investment.The trend will revert to mean after the bull run is over.<br />The funny thing about US $ is that because of so many factors, when a worldwide deflation takes place, it will be the only store of value. All of a sudden we will see that US $ has the most purchasing power. <br />It is a question of when not if.World of Financehttps://www.blogger.com/profile/14109552944903875871noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-67978236981624603782012-04-21T16:26:27.852-07:002012-04-21T16:26:27.852-07:00Well, I didn't say that now is the right time ...Well, I didn't say that now is the right time to buy gold nor having 100% gold portfolio. I was just pointing out a trend that still has to be reversed.<br /><br />I don't really understand what would "the death of US$" be?<br /><br />My problem with US$ are negative real interest rates. I'm not afraid of a collapse, but I don't like losing purchasing power in orderly manner either, especially not in a long term.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-82386243987344236542012-04-21T15:23:40.075-07:002012-04-21T15:23:40.075-07:00I really have no idea but Apple is due for a bounc...I really have no idea but Apple is due for a bounce along with the market. That should be the time to sell into.World of Financehttps://www.blogger.com/profile/14109552944903875871noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-68649898714446293432012-04-21T15:22:35.732-07:002012-04-21T15:22:35.732-07:00This chart is misleading in the sense that it has ...This chart is misleading in the sense that it has been created by someone who wants to sell gold. Gold started its bull run from 2002. If you extend this chart another 10 years and look at the 30 year chart for gold, you will see what I mean. The easy money has been made in gold. We have already seen the high at $ 1950. The max it can go up is $ 2500 and then the bear market for gold starts again. <br />I would consider gold as another asset class and keep some part of my investment in gold. <br />People have been speculating about death of US$ for many years and it is not going to happen any time soon. <br />I expect the whole investment world will get a shock and awe starting 2013.World of Financehttps://www.blogger.com/profile/14109552944903875871noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-14459288821785779362012-04-21T12:27:54.510-07:002012-04-21T12:27:54.510-07:00do you think aapl earnings will be good or bad?do you think aapl earnings will be good or bad?alexnewbeehttps://www.blogger.com/profile/12065328429698689814noreply@blogger.comtag:blogger.com,1999:blog-6062751687592413583.post-60901918862197704532012-04-21T11:57:41.458-07:002012-04-21T11:57:41.458-07:00I agree on most of things you say, but, could you ...I agree on most of things you say, but, could you please comment on this long term SPX chart:<br /><br />http://www.marketoracle.co.uk/images/2010/May/spx_gold_ratio.png<br /><br />Your 15 years channel looks differently from another POV. I really won't care if SPX goes to 2000, if I can't buy half an ounce of gold for it.<br /><br />Thanks.Anonymousnoreply@blogger.com