Once the Country and economy has completely collapsed, I can already hear Obama proudly stating that he single handedly kept us going for as long as he could....but could just not overcome the damage that Bush had done !!
...Bottom line is that a shrewd investor needs to only go into the market when they think good fundamentals will be reported and then get out as soon as they are because of the speculative nature of the market, which reacts to every piece of news like it's the end of the world...
Len... thanks for the very good post. Since my last post here hours ago, I have been reading as much as I can about what may be happening with the market right now. Unfortunately, things don't look very good. And, it's not just the USA that has problems... no, it's an international situation.
What is going to make stocks go up at this point in time? IMO, it's possible that absolutely NOTHING will make them go up significantly until there is some major positive news... such as some encouraging employment data. The whole situation now leads me to expect that there is much more downside potential than upside.
As I look ahead, I realize that I don't have to participate in any more bloodshed. So, I am now reconsidering whether or not I will actually ride this out or completely get out of the market tomorrow.
As I posted days ago, I sold all my largest holdings, which was concentrated in two stocks... Citigroup and QLIK. I am extremely happy that I sold them before this horrible day in the market. In fact, I should celebrate... considering all the money I avoided losing!
That said, I did have some minor losses today with the small remainder of my portfolio, and my question to myself is whether or not I will cut those smaller losses, and not let them get worse. I don't want to chip away at my overall larger gain. I think there are enough compelling reasons to get out of the market tomorrow, unless there is some immediate evidence that stocks could rise again very soon... and frankly, I don't see it.
Anyway, I'll make my decision later tonight. I still need to think about it some more.
Tag, without a secure US market, the rest of the worlds markets will be held at bay. I d'ont see any reason to be in stocks right now with nervous nilly speculators. As I said though, if we really had a pro business administration that had some semblance of fiscal responsibility this would be a great time to buy stocks for the reasons I stated in my other post. I'm all out now except for Citi and Apple but those are small positions vis a vis my retirement investments plus I'm way up on both anyway. But I have thought of selling Apple. I have not read a lot about QLIK but the little I have read defines a type of business model I'm not crazy about. But again I hardly have read much about it so d'ont go by me.
I know some of you guys have loved my yard photos in the past and this season may be the prettiest it's ever looked as my Crape Myrtles have flowered beautifully.If anyone doesn't know this tree it flowers from July into early October but it's first flower burst is the most intense. That is surprising to me as it has been brutally hot here (more than 40 days over 90 so far and several over 100) and we're in a drought. Save for 2 days of tropical rains in July that gave us about 4" of rain, we have had very little rain, probably under 1" the whole summer. BTW - pool temp today was 90! Anyway here's a link to the photo.
Although it was my good fortune to have sold all my major stock holdings, which were concentrated in Citi and QLIK, prior to Wednesday's bloodshed, I still hold some minor positions in a few additional stocks.
So, with regards to those stocks, my sell orders are in place using my online trading software. Those remaining stocks will be sold at the opening bell Thursday morning. Any further decline in Thursday's stock market after that point will be without my participation.
I have, however, placed a couple of orders to purchase some gold-related shares.
That's it.
From a personal perspective, I feel very blessed that I was once again able to escape financial harm from this crazy stock market by selling Citi and QLIK prior to the massacre. I had so much money tied up, I am amazed that I got almost all of it out just in the nick of time. I am so relieved.
Thursday will be an interesting day for the markets... I imagine that's an understatement, but we'll see. Good luck to all of you that are riding this out.
Len. I know you only own some Apple and Citigroup shares that you purchased far enough back that you are going to be ahead no matter what... so you are most likely immune from any market disaster.
Charlie, as I understand them, your stock positions are basically solid, but some of your more recent activity is vulnerable. Because you tend to hold onto your stocks for a long while, you will most likely be in a better position with your stocks before the end of the year. My prediction is that we will see a rally sometime around Thanksgiving.
GS, whatever you are doing with your investments, I really hope you make a killing so that you can get one or both of those great supercars... the Lexus LFA or the Porsche 918 Spyder.
Tony, you are a smart conserative investor that will not be harmed by this market.
Houdini, you are also a smart conservative investor... I have confidence that you will not be hurt by this market either.
Jose, I cannot recall if you own stocks. I do know that you have a lovely and truly great wife, and that you have invested your time and energy in having a great relationship with her... a brilliant investment indeed. Perhaps you are the smartest investor here!
God bless you all.
My new focus now is to spend some of my hard-earned gains I squeezed out of this insane stock market... by installing a cozy spa and fire pit in the back yard of my little beach house in Malibu, California that overlooks the Pacific Ocean. :shades:
My new focus now is to spend some of my hard-earned gains I squeezed out of this insane stock market... by installing a cozy spa and fire pit in the back yard of my little beach house in Malibu, California that overlooks the Pacific Ocean.
While you relax in your heavenly surroundings, I will be sweatin' bullets, being invested in this crazy market . I am going to ride this out, but as you know, I have not bet the farm. I still do not see anything close to a "double dip". A lot of this is scare that past few days is media driven.
It's going to stay that way until Obama comes clean on taxes. To think we are still toying with a tax increase at this point is ludicrous. It's clear as day that his idea to spend without limit and then tax folks to pay for it is totally unworkable. You cannot "spread it around" without killing an economic recovery and ultimately without killing off capitalism. You can only spread it around with job hirings and yes, in that case the rich will get richer, something Obama seems to be against. Again he makes it sound so simple that we are only dealing with 2% of America. But we need to complete the sentence - it's the 2% of America that creates a high majority of job growth in America. In the face of larger corporations putting even more American jobs out to India (Corporate America is even outsourcing lawyers from Inda now - see below) and other places abroad that 2% is now more important than ever as it not only hires but that 2% keeps the jobs here.
TM, those are very kind words... I have mentioned in some earlier posts that I've learned a new investment technique that's is quite low in risk with very consistent rewards. I am confident that my portfolio will meet its goal by 2012. Now for 918, I will need to close some Qlikview licence for enterprise deals soon or risk buying second hand one. I am very envious of your CA properly and Len's backyard.
...I am very envious of your CA properly and Len's backyard.
Thank you.
My little piece of paradise here in Malibu is quite tiny, especially compared to the sprawling estate property I previously owned in Northern California. That property was absolutely magnificent and breathtaking... beyond description. Living and entertaining there was a memorable experience. Selling it was heartbreaking, and an important individual with Cisco is now the new owner.
However, this current property, although very modest and tiny, is perfect for gearing up for retirement, as it is a short walk to the beach and a private beach club (which comes with ownership in this little neighborhood) , and a little commercial center that contains a Starbucks coffee. Other necessities are very close by. But the real plus is the monster view... almost 360-degrees of panoramic view, of which is nearly 180-degrees of Pacific Ocean.
Another big reason I am down here is that my son is involved in the entertainment business, and it is a workable (although sometimes very frustrating) drive to the studios. He typically watches a movie in the back of the Jag, when I "chauffeur" him around. Mostly, however, he is somewhere on a tennis court or on a pitcher's mound, or working on his surfing skills, as he's a great little athlete.
I don't really need all that much any more, and I am enjoying the simpler life. The wife and kids are having so much fun here, and the only real downside is that I have to fly to Northern California periodically to maintain a proper interaction with my business up there. It's a 55-minute flight, so not so bad really. Heck, some commutes are longer than that!
To comment on Len's property (again)... I think it is absolutely awesome. I have seen the pics over the years, and it is deserving of the magazine coverage it has received. Wonderful East coast New Jersey property, and close enough to NYC for business and pleasure, and there's always a workable drive to the NJ "shore" in the summer... although I'd probably never leave that beautiful backyard... it's an entertainer's delight, and Len has done a magnificent job with the property with every detail.
Again, good luck with your investments. You are a very smart man, and I have no doubt you will make a monster fortune and have your turn at living the 'good life".
I must say, however, as my life and so many others proves... our families and loved ones are the most precious and important parts of our lives, and "investing" our time and energy in them is the best investment we can ever make.
My investment profile is overwhelmingly conservative. I'm not such an agile 'squirrel' investor type as you and others in this forum are, so I keep stoically watching ups and downs of my portfolio exposed parts, correcting them only from time to time. I'm not in a hurry to collect benefits by now (though one never knows, do we?). Yet I'm worried for the current state of the economy, were not that in closing time a big black hole digs into it anything, no matter how solid it might be looks like now.
The small portion of my investment which is more at risk —in particular, Santander Bank, Telefonica, Inditex stocks— is listed in markets I'm familiar with [Spanish IBEX and European Eurostoxx (Amsterdam, Brussels, Paris)]. Thus, I've not much to comment on the American markets movements, though I follow them from the distance. Every blown and wave originated over there is reaching this shore at light speed, as you know well.
TM, you seem to enjoy your daily work, which is a great achievement. Enjoy also your earning, I mean, your family and house! Looks like paradisiac. And enjoy yourself. In three generations, few of us, if any, will be remembered but in a few photos, videos or lines fading off everyday passing by.
That article doesn't get to the real impact of Obama's policies.
Obama is targeting individuals and businesses that make the biggest contribution to our economy.
We will ALL feel the pain.
Personally, I will be hurt from two Obama assaults... my small business will be hurt, and also my individual tax liabiltiy will be worse.
I have killed my original plans for some investment in new equipment, and I am not going to hire any new employees, not even to replace those that were let go during the middle of the financial crisis. And I believe my situation is typical of businesses and individuals throughout the nation... multiply my situation exponentially and you will understand the impact to the nation.
Because many businesses like mine are not going to hire new employees (or purchase new equipment), the cumulative national damage is HUGE. Obama doesn't understand this. If there were more jobs, there would be a much larger tax revenue stream and no need to raise taxes. In addition, there would be an ability of those employed individuals to spend money on housing and consumer goods. The economy would get healthier.
And, the notion that $250K income defines someone as being rich is insane, and a politically motivated lie... and a dangerous one at that, as it targets and punishes a group of Americans based on financial demographics that are misrepresented for political gain.
And, the notion that $250K income defines someone as being rich is insane, and a politically motivated lie... and a dangerous one at that, as it targets and punishes a group of Americans based on financial demographics that are misrepresented for political gain.
Isn't that the truth. I'll assume the $250k will be in regards to taxable income, not gross income. That will cause those in on the bubble to do what they can to stay under $250. Meaning, they may attempt to book less sales (self employed), defer more income income or do whatever they can to make sure they don't get soaked by being over $250k.
I find it's more of a populist plan. Most don't make that much so, the masses think it's a great idea, though if you run the numbers it will probably hurt more than it helps. Your comment in regards to how are running your business is right in line with the business owners I know. They're not happy one bit.
...I keep stoically watching ups and downs of my portfolio exposed parts, correcting them only from time to time. I'm not in a hurry to collect benefits...
TM, you seem to enjoy your daily work, which is a great achievement. Enjoy also your earning, I mean, your family and house! Looks like paradisiac. And enjoy yourself. In three generations, few of us, if any, will be remembered but in a few photos, videos or lines fading off everyday passing by.
You are wise, without a doubt.
I have made a decision this morning that is unusual for me. You will appreciate this.
After this latest round in the stock market, I have decided to allow my broker to use "my half" of the funds that we had previously split between us in our little stock market competition. I want to relax and stop spending so much time focusing on the markets every day... like you and Charlie and most of the others around here. There is something to be said for that.
Circle W also posted to that effect in the past. I think it will be a healthier experience, at least for a while. I hope I can do it, and I bet it will be difficult at first to "let it go" for a while.
He is a smart broker, and he has supplied me with a spreadsheet and we have agreed to the strategy of investing in a large diversified selection of stocks, incrementally over a period of time. I have allowed him to invest $500K in just equities, and instructed him to keep the majority and rest of my portfolio in fixed instruments that have been providing a really good secure return.
Wow... I hope I don't go crazy. Or, perhaps it would be more realistic to say that I've already been crazy, and now I get to chill out like the rest of you guys!
I find it's more of a populist plan. Most don't make that much so, the masses think it's a great idea, though if you run the numbers it will probably hurt more than it helps. Your comment in regards to how are running your business is right in line with the business owners I know. They're not happy one bit.
Thanks for the feedback Keith.
Yeah... I can't imagine any business owner supporting Obama's policies.
I like your terminology of calling it a "populist" plan.
That article doesn't get to the real impact of Obama's policies.
Obama is targeting individuals and businesses that make the biggest contribution to our economy.
I posted that article only to point out the facts about the various tax brackets. I did not post it to start another debate. We already went through this a couple weeks ago.
I am hanging in and doing OK. I recently had a Munie bond called so I used that cash to buy some Wells Fargo preferred stock. It is returning about 9% based on the price I bought in at. First call date is 2013. I was hoping it would go down some yesterday so I could buy some more but it went up 20 points!
You might start lining up some tax free bonds or bond funds to keep your tax liability down. I am not sure if they would count the tax free income against the $250K limit or not. Anyone know?
What concerns me is that Obama might start to also use a "net worth" figure to determine if you are "rich" or not in an attempt to get at our savings, etc. I think I heard Geithner mention something like that very briefly.
Immigration isn't bad in and of itself, but mismanaging it is suicidal.
Agreed. Three factors are involved which are extremely difficult to conciliate: local economies in need of work force; families looking for a better life (a human desire good in itself); receiving nation/human groups looking to preserve their identity.
I still can't see a justifiable reason for the recent Euro price recovery, or for the currency to be as strong as it is.
Euro currency depression was caused, in great part IMO, by speculators betting for it and then being followed by some economical gurus & journos strolling the suddenly fashionable path. Recovery is, IMO again, a fair rebound to some extent, yet pushed by Chinese Gov. and other speculative movements in the opposite direction.
Did people really believe those politically motivated "stress test" results?
Be careful with "stress test" results. Taken indistinctly may be it doesn't mean much, yet Bank by Bank can be very informative if you are an investor.
They were made to stop speculations bleeding confidence on distinct European Banks by way of daily short-time bets (as for instance, those of Deutsche Bank on Spanish Banks!) and never-confirmed but never-stopped rumors attributed to German Gov. by Financial Times of Deutschland on the same matter, that is, that some big Spanish banks were on the verge of bankruptcy. Then, stress tests were assumed and prompted by European Council after Spanish Gov. menaced of publishing by its own the results of the Spanish Banks to unveil their solidity as compared to others, in particular the Germans. This is what was hidden in the stage set.
Then, European Council gave a few directions for the stress tests to be conducted and developed to particular extents by the Economic Authority within each Country, as agreed with Ms Merkel, who didn't wanted the tests. As a result, some Countries were very rigorous, some were not. Those which were, applied the tests to as many Banks (and local Saving Banks) as possible, and published full data on their assets, they including toxic investments even in Sovereign debt. Thus, investors and real searchers browsed Country by Country and Bank by Bank looking for detailed figures, which is the important stuff, not what economy journos were publishing in the headings.
I've mentioned Spanish Banks. All Banks and 96 % of Saving Banks were tested in Spain. All of them were obliged to expose all figures, which are published. Five Saving Banks failed the test, which are now in process of re capitalizing. In the whole Europe, Bank # 1 as tested is Banca March (Spain), # 2 is Banco de Santander, # 4 is BBVA (Banco Bilbao-Vizcaya-Argentaria, Spain). French and Swiss (only the USB was presented as an entity) Banks passed very well the tests as well. Germans Banks tested were few and some 'important', among them Deutsche Bank, passed only by the skin of a teeth. GB Banks tested were only four, and they passed all, of course. In recent days, Santander Bank has bought 12 local branches of the Bank of Scotland; the bought branches are placed in Scotland and England.
As a whole, stress tests alleviated the pressure on many institutions which were under unfair suspect, and consequently the confidence on the European economy, in particular of those regions suspected of extreme 'weakness' grew.
There is a lot of trouble in European economics, but please don't buy everything which is published in the media. After all, averaged journalists are mainly interested in chasing stories and secondarily may be in the truth. And unfortunately I'm not joking in this.
Here it has been posted that one of the worst things in the current global state of affairs is the bad quality of politics and the politicians. A fair stating, IMO. Yet the 4th Power current quality is also worsting matters. Democracy is and will be the looser.
You might start lining up some tax free bonds or bond funds to keep your tax liability down. I am not sure if they would count the tax free income against the $250K limit or not.
In this case, all the investing is done within a tax-deferred retirement trust, which I initiated in 1984... so there are no tax liabilities to be concerned with until the day comes that I finally take some of the money out of the account.
What concerns me is that Obama might start to also use a "net worth" figure to determine if you are "rich" or not in an attempt to get at our savings, etc. I think I heard Geithner mention something like that very briefly.
OMG... say it isn't so. More attacks upon successful Americans. Obama is seriously misguided.
I can't wait for the next Presidential election to give him the boot.
I posted that article only to point out the facts about the various tax brackets. I did not post it to start another debate. We already went through this a couple weeks ago.
Sorry Charlie. Didn't mean to upset you, nor violate your good intentions.
Couldn't possibly agree more. Basically raising taxes to a small business that passes its income directly to shareholders is a nightmare. As I posted once before, a tax increase in conjunction with tight loan covenants on bank loans paralyzes any new hiring. Even if the business has a lot of spare cash flow for hiring it could go in default of a loan by missing it's covenants and covenants on new bank loans, assuming you can get one from a bank over a hedge funds extortion rates, are super tight. These days no one wants to go in default of a loan because it usually means higher interest rates to get a waiver. And again this is even more restrictive than most realize beacuse the income reported by small business shareholders is often higher than the cash flow they get if they have business loans to repay. Those loans are what they made to expand business and take on risk. The whole issue here with this income level is that government acts (and folks that never ran a business think) of the income as W-2 income where every dollar you reported is what you got in cash. It's not and the government doesn't give you credits for business expansion through loans and loan payments. So what happens to most small business is they get marginalized even more. I have come to the conclusion that this is completely beyond Obama's comprehension.
Has anyone ever seen anything good come out of a tax increase, let alone one in this type of an economic cycle?? And again the reason this is an important discussion here is that the foundation of long-term growth, solid investing and a good stock market is jobs. We've reached the point where any talk of stimulus is now a reminder that the economy, and the feds fear of it, is more fragile than any of us reallize. What our government is doing through all it's expansion reminds me of a doctor who has all the right meds and is clueless who to give them to. And when that doctor runs out of those meds - everyone's health fails.
To all: Thanks for all the positive comments on the pool and yard. I actually take even greater pride in the fact that I planted those crape myrtles myself and selected or planted most of the other shrubs in the yard also. Growing up in Brooklyn as a pure city and school yard sports oriented kid I knew nothing about trees or plants and never thought I'd ever have any knpwledge.
What concerns me is that Obama might start to also use a "net worth" figure to determine if you are "rich" or not in an attempt to get at our savings, etc. I think I heard Geithner mention something like that very briefly.
Leave it to Obama and Pelosi to create a "before you die estate tax". And how do we define net worth. Most folks who have high net worth have it tied up in valuations of assets, real estate or the value of their businesses.They often d'ont have the ccash in the bank. So what do folks do - sell assets to pay tax or borrow to pay the tax so that Government can throw more money down the toilet. I hope Obama understands what t estate tax did to families that were victimized into selling assets just to pay the estate tax. This was especailly true of farmlands that have now disappeared from the country side.
I'd like to think a net worth tax is a rumor or a joke but with this President's lack of financial knowledge and discipline, it's a distinct possibility. I pray to God we have a Republican congress to thwart him by year end.
To all: Thanks for all the positive comments on the pool and yard. I actually take even greater pride in the fact that I planted those crape myrtles myself and selected or planted most of the other shrubs in the yard also. Growing up in Brooklyn as a pure city and school yard sports oriented kid I knew nothing about trees or plants and never thought I'd ever have any knpwledge.
Impressive, I'm still struggling at keeping my grass green;)
Has anyone ever seen anything good come out of a tax increase, let alone one in this type of an economic cycle??
Well, if you watch the bone heads on MSBC, they come up with all types of BS..LOL
The whole issue here with this income level is that government acts (and folks that never ran a business think) of the income as W-2 income where every dollar you reported is what you got in cash.
Unfortunately, that seems to be the mentality of much of the public. They fill their car up with $50 of gas and think the gas station owner and/or the oil company just pocketed $50.
He He, TM you are a 'culo inquieto', no doubt. That means you are an energetic man, you cannot stay seated but for a short time. Whatever you do, keep us posted. It is enlightening.
I hesitate to make this suggestion, but in light of what I know usually happens, I would suggest you continue to manage your affairs---after taking a break----I think it was smart of you to have your broker to be able to have a sounding board, and as you are a knowledgable person--he thinks twice before doing something in your name....Give yourself credit for all your accomplishments, and realize you are the person who did such......I believe we all would like to be able to turn thing over to a trustworthy person, but I am afraid that may backfire on you....Courage my friend Tony
Is it really a "depression" of the currency, or a correction? Should the Euro ever have been valued over $1.50 to begin with? Wasn't that just something made by "speculators" (in this case maybe acting on the demands of traders employed by one worlders trying to undermine the greenback) as well? I don't see much longterm vision or strategy in the EU(SSR), nor any way to cope once the American military operation finally winds down.
Regarding the banks...I just can't believe everything is especially healthy there, or any healthier than the US anyway. I've read a bit of criticism about these "tests" being too easy and manipulated for political gain.
Democracy...doesn't exist when the masses are brainwashed and greedy corporations and greedy politicos fight for dominance. Maybe a few dozen million more non-assimilating immigrants and some more public debt will cure things. Right.
I know some of you guys have loved my yard photos in the past and this season may be the prettiest it's ever looked as my Crape Myrtles have flowered beautifully.If anyone doesn't know this tree it flowers from July into early October but it's first flower burst is the most intense. That is surprising to me as it has been brutally hot here (more than 40 days over 90 so far and several over 100) and we're in a drought. Save for 2 days of tropical rains in July that gave us about 4" of rain, we have had very little rain, probably under 1" the whole summer. BTW - pool temp today was 90! Anyway here's a link to the photo.
Your yard and pool area is beyond beautiful Len. BTW, in contrast to your heat and dryness we have had heat and extreme wetness. I'm pretty sure that Ames, IA has been on the National News the past couple days. Hilton Coliseum area (at Iowa State University) was surrounded by about a 10-12 foot deep lake. Hilton floor was under 8 feet of water yesterday with severe damage. This is a summer like no other here in the Midwest (especially IA). Usually, when it is this wet (record rainfall), it is also fairly cool in the summer. We cannot find any other summer since records have been kept (about 140-150 years) that matches this one. Almost every day, the dew points are way up into the 70s and sometimes reaches 80. That is ungodly humid. This keeps the night time lows very warm but the day time highs don't get too hot (mostly in the upper 80s to mid 90s). This morning, the low was 77 and that tied the record for the warmest minimum. Most mornings recently have been in the low 70s only because it has been raining (strong storms) late at night and the air cools down to that level. It did not rain last night and the low was 77. If it does not rain tonight the low will likely not get any lower than about 80. The dew point this afternoon is 78. These dew points are typically higher than they are along the Gulf Coast.
I'm sure I have discussed this here on prior posts, but the THE main reason it is SO humid is because of the "Sea of Green Effect". The vast and very densely populated corn and soybean plants spew out (evapotranspiration) a tremendous amount of water vapor into the air. Thus, it is a self perpetuating effect of "wetness begets wetness". The climate for the summers here in the Midwest has definitely gotten cooler and wetter the past 30 years or so. But this is ONLY in the summer months of June through August. We have not had a record high temperature in Des Moines since 1988 in these months. Every other month of the year has seen numerous record highs. We have obviously had record warm lows, however, due to the Sea of Green Effect. In my opinion, the only way we can have a genuine drought in the Midwest in the summer is by starting out very hot and dry in April and may so that the crops cannot get off the ground. This greatly reduces the Sea of Green Effect. This is exactly what happened in 1988, out last genuine drought in the summer. I'm sure you have all heard by now about the extreme heat and drought in the Russian wheat country. Well, there is no Sea of Green over there. Wheat is a totally different type of plant. BTW, Moscow has reached 100 degrees for the first time ever. There have been at least 7 record highs in Moscow this month and 19 for the summer so far. For the Globe as a whole, this will likely be the warmest ever (since reliable record keeping).
Hey, I did say anything meriting such a harsh reply. Read my post again, if you please. :sick: Anyhow, no interest from my part in following the thread.
You mentioned gold investments earlier. I have been pondering the best way to get into gold. Any suggestions?
I can certainly inform you with the exact method I used to add "gold" to my portfolio. But, there are a number of ways to invest in gold, and I suggest you look at all your options before you make the decision. Heck, there are some investors that keep gold coins in a safe deposit box. You'll want to choose the investment method that is most comfortable for your investment style and strategy.
I invested in gold in two different ways...
First, I purchased shares of GLD, which is the trading symbol for SPDR Gold Trust, SPDR Gold Shares... it's an ETF with the objective of closely following the actual price of the precious metal. It's a terrific way to invest in gold, IMO.
Here's a link regarding SPDR Gold Shares (symbol GLD):
Second, I purchased shares of Agnico-Eagle Mines Ltd., symbol AEM. This is a gold producer with mining operations. There are others as well, but one reason I like this one is that it doesn't have a lot of exposure to politically sensitive locations that could cause its business to falter. It's a strong company that provides another method of investing in gold.
Be aware that gold has had significant gains recently, and that it could be getting close to a top soon, although people have been saying that for a very long time. Regardless, do your homework before investing.
Also, this is interesting... my broker called me a little while ago to inform me that he sold all of my gold investments!... he insists that owning gold is risky at this point in time, and he had a better way to accomplish it. I really don't know what he has done. Even the experts don't agree with each other at this point in time, but I do tend to think that there should be some reasonable level of gold in every well-diversified portfolio.
So... regardless of my broker's point-of-view... you now know my original and exact method I used to invest in gold.
I hesitate to make this suggestion, but in light of what I know usually happens, I would suggest you continue to manage your affairs---after taking a break----I think it was smart of you to have your broker to be able to have a sounding board, and as you are a knowledgable person--he thinks twice before doing something in your name....Give yourself credit for all your accomplishments, and realize you are the person who did such......I believe we all would like to be able to turn thing over to a trustworthy person, but I am afraid that may backfire on you....Courage my friend Tony
No reason to hesistate with your suggestion.. I appreciate it.
I can always jump in if there is a reason to do so. And, I still have 24/7 access to my online trading software he has provided for me. So, I can make any investment the moment I really feel compelled to do so. In fact, I can even access all of the investments he has made on my behalf... so I have the control if I need it. But like you suggested... "after taking a break".
He He, TM you are a 'culo inquieto', no doubt. That means you are an energetic man, you cannot stay seated but for a short time. Whatever you do, keep us posted. It is enlightening.
I purchased shares of Agnico-Eagle Mines Ltd., symbol AEM.
Yeah, I happened to be flipping channels the other day and caught some of Cramer, he was talking highly of AEM and I think he had their CEO on his show.
I'm not a huge fan of Cramer for reasons I've already posted, but I did catch that exact presentation and I was actually impressed enough to make it the mining company that I selected. IIRC, the last time I purchased shares of a mining company, it was Nevada Mining, but I ended up selling it. Maybe my broker talked me out of it that time as well... LOL.
Anyway, I already knew about GLD, so I put the two together.
I look at gold as a hedge against inflation. And a currency when the whole system collapses. Hopefully we can get into the safe deposit box when that happens. I like going and looking at a box full of Krugerrands and Ducats. Along with a mixture of other gold coins. My friends that have invested in gold and silver stocks have not kept up with the market.
That said most of our gold coins were bought below $300. Some before the 1970s run-up on precious metals. Buying at $1200 per ounce seems shaky to me. The other hitch is finding buyers that are not intimidated by the state. There should not be any tax on currency. Gold bullion is currency. Some see it differently. My seller/buyer considers it like money. He also does foreign exchange.
This one may surprise you given what you know of my background, but ages ago, early in my career actually, I worked for Consolidated Gold Fields of London. But their US ops I worked on were more related to steel, oil rigs ( a company called Skytop Brewster) and waterwell drilling equipment (a company callled GEFCO).. ConsGold as it was often called had a US gold mining businesss named Gold Fields Mining Corp but I had nothing to do with that. But because of someone being ill I actually was called in for data analysiis and took a small role in their buy into what was then a rapidly developing company which is now very well known - Newmont Mining. I believe at one point they had about 30% of Newmont. But the British market had no faith in management and the British tabloids made a mockery of the then CEO - Rudolph Agnew if I remember right. D'ont know what they ever did with their position in Newmont but eventually they were acquired by Hanson long after I left. I found this business so boring and left after 2-3 years or so but what I'll always remember it because it was the high inflation period where the Hunts tried to corner silver and Gold reached $840 an ounce while Paul Volker let the prime rate jump to 23%. The things I did later are just so distanced from that and the media and media/marketing information business was so much more suited to me.
Well, I passed on GLD when it was $90/shr thinking Gold was to high, so I haven't done anything in regards to gold. Sitting on my hands has been expensive.
AEM looks like a great way to invest in gold and combining it with GLD is interesting.
I hope you forgive me for all my Obama posts. Like Tag says the love runs deeps in this group. I've known you guys and Tony so long that you guys feel like best friends to me.
I look at gold as a hedge against inflation. And a currency when the whole system collapses.
Thanks Gary... you are right. Gold frequently seems to be a popular investment choice when the markets are collapsing... but can also go up when the markets are going up... probably because it represents some form of "stability" in the face of volatility and uncertainty. Afterall, it used to be our monetary "standard".
Your information that coins are a better invesment than the gold stocks is interesting, and I really appreciate it... afterall, you have many years of experience with this.
I might look into getting some of those coins in the future... at a time when gold prices take a big hit, of course.
I am sure that Houdini also appreciates your post.
I'll always remember it because it was the high inflation period where the Hunts tried to corner silver and Gold reached $840 an ounce while Paul Volker let the prime rate jump to 23%
Wow... flashback! What a different world we live in now. Just a different type of government insanity, I suppose.
I remember the Hunts scandal. Someone told me to buy silver, and I fell into the whole trap and actually bought bags full of silver dollars. I also remember selling all those coins right before the bottom fell out. Man, I was lucky. Many folks were not so lucky.
Just think how many different financial scandals there have been since then. They never seem to end.
Comments
2013 LX 570 2016 LS 460
Len... thanks for the very good post. Since my last post here hours ago, I have been reading as much as I can about what may be happening with the market right now. Unfortunately, things don't look very good. And, it's not just the USA that has problems... no, it's an international situation.
What is going to make stocks go up at this point in time? IMO, it's possible that absolutely NOTHING will make them go up significantly until there is some major positive news... such as some encouraging employment data. The whole situation now leads me to expect that there is much more downside potential than upside.
As I look ahead, I realize that I don't have to participate in any more bloodshed. So, I am now reconsidering whether or not I will actually ride this out or completely get out of the market tomorrow.
As I posted days ago, I sold all my largest holdings, which was concentrated in two stocks... Citigroup and QLIK. I am extremely happy that I sold them before this horrible day in the market. In fact, I should celebrate... considering all the money I avoided losing!
That said, I did have some minor losses today with the small remainder of my portfolio, and my question to myself is whether or not I will cut those smaller losses, and not let them get worse. I don't want to chip away at my overall larger gain. I think there are enough compelling reasons to get out of the market tomorrow, unless there is some immediate evidence that stocks could rise again very soon... and frankly, I don't see it.
Anyway, I'll make my decision later tonight. I still need to think about it some more.
TM
I know some of you guys have loved my yard photos in the past and this season may be the prettiest it's ever looked as my Crape Myrtles have flowered beautifully.If anyone doesn't know this tree it flowers from July into early October but it's first flower burst is the most intense. That is surprising to me as it has been brutally hot here (more than 40 days over 90 so far and several over 100) and we're in a drought. Save for 2 days of tropical rains in July that gave us about 4" of rain, we have had very little rain, probably under 1" the whole summer. BTW - pool temp today was 90! Anyway here's a link to the photo.
http://tinypic.com/view.php?pic=2zgak5s&s=4
re: The market... It is more like a casino than ever.
TM
So, with regards to those stocks, my sell orders are in place using my online trading software. Those remaining stocks will be sold at the opening bell Thursday morning. Any further decline in Thursday's stock market after that point will be without my participation.
I have, however, placed a couple of orders to purchase some gold-related shares.
That's it.
From a personal perspective, I feel very blessed that I was once again able to escape financial harm from this crazy stock market by selling Citi and QLIK prior to the massacre. I had so much money tied up, I am amazed that I got almost all of it out just in the nick of time. I am so relieved.
Thursday will be an interesting day for the markets... I imagine that's an understatement, but we'll see. Good luck to all of you that are riding this out.
Len. I know you only own some Apple and Citigroup shares that you purchased far enough back that you are going to be ahead no matter what... so you are most likely immune from any market disaster.
Charlie, as I understand them, your stock positions are basically solid, but some of your more recent activity is vulnerable. Because you tend to hold onto your stocks for a long while, you will most likely be in a better position with your stocks before the end of the year. My prediction is that we will see a rally sometime around Thanksgiving.
GS, whatever you are doing with your investments, I really hope you make a killing so that you can get one or both of those great supercars... the Lexus LFA or the Porsche 918 Spyder.
Tony, you are a smart conserative investor that will not be harmed by this market.
Houdini, you are also a smart conservative investor... I have confidence that you will not be hurt by this market either.
Jose, I cannot recall if you own stocks. I do know that you have a lovely and truly great wife, and that you have invested your time and energy in having a great relationship with her... a brilliant investment indeed. Perhaps you are the smartest investor here!
God bless you all.
My new focus now is to spend some of my hard-earned gains I squeezed out of this insane stock market... by installing a cozy spa and fire pit in the back yard of my little beach house in Malibu, California that overlooks the Pacific Ocean. :shades:
TM
While you relax in your heavenly surroundings, I will be sweatin' bullets, being invested in this crazy market
BTW, have you placed a bid to buy CA yet
http://www.nytimes.com/2010/08/05/business/global/05legal.html?scp=1&sq=outsourc- - ing%20lawyers%20from%20India&st=cse
http://community.nytimes.com/comments/www.nytimes.com/2010/08/05/business/global- - /05legal.html?scp=4&sq=outsourcing%20lawyers%20from%20India&st=cse
I have mentioned in some earlier posts that I've learned a new investment technique that's is quite low in risk with very consistent rewards. I am confident that my portfolio will meet its goal by 2012.
Now for 918, I will need to close some Qlikview licence for enterprise deals soon or risk buying second hand one.
I am very envious of your CA properly and Len's backyard.
Here is an interesting and I assume accurate breakdown of the impact on taxes if current thinking prevails:
http://money.cnn.com/2010/08/12/pf/taxes/bush_tax_cuts_almost_rich/index.htm?hpt- - =C2
...I am very envious of your CA properly and Len's backyard.
Thank you.
My little piece of paradise here in Malibu is quite tiny, especially compared to the sprawling estate property I previously owned in Northern California. That property was absolutely magnificent and breathtaking... beyond description. Living and entertaining there was a memorable experience. Selling it was heartbreaking, and an important individual with Cisco is now the new owner.
However, this current property, although very modest and tiny, is perfect for gearing up for retirement, as it is a short walk to the beach and a private beach club (which comes with ownership in this little neighborhood) , and a little commercial center that contains a Starbucks coffee. Other necessities are very close by. But the real plus is the monster view... almost 360-degrees of panoramic view, of which is nearly 180-degrees of Pacific Ocean.
Another big reason I am down here is that my son is involved in the entertainment business, and it is a workable (although sometimes very frustrating) drive to the studios. He typically watches a movie in the back of the Jag, when I "chauffeur" him around. Mostly, however, he is somewhere on a tennis court or on a pitcher's mound, or working on his surfing skills, as he's a great little athlete.
I don't really need all that much any more, and I am enjoying the simpler life. The wife and kids are having so much fun here, and the only real downside is that I have to fly to Northern California periodically to maintain a proper interaction with my business up there. It's a 55-minute flight, so not so bad really. Heck, some commutes are longer than that!
To comment on Len's property (again)... I think it is absolutely awesome. I have seen the pics over the years, and it is deserving of the magazine coverage it has received. Wonderful East coast New Jersey property, and close enough to NYC for business and pleasure, and there's always a workable drive to the NJ "shore" in the summer... although I'd probably never leave that beautiful backyard... it's an entertainer's delight, and Len has done a magnificent job with the property with every detail.
Again, good luck with your investments. You are a very smart man, and I have no doubt you will make a monster fortune and have your turn at living the 'good life".
I must say, however, as my life and so many others proves... our families and loved ones are the most precious and important parts of our lives, and "investing" our time and energy in them is the best investment we can ever make.
TM
My investment profile is overwhelmingly conservative. I'm not such an agile 'squirrel' investor type as you and others in this forum are, so I keep stoically watching ups and downs of my portfolio exposed parts, correcting them only from time to time. I'm not in a hurry to collect benefits by now (though one never knows, do we?). Yet I'm worried for the current state of the economy, were not that in closing time a big black hole digs into it anything, no matter how solid it might be looks like now.
The small portion of my investment which is more at risk —in particular, Santander Bank, Telefonica, Inditex stocks— is listed in markets I'm familiar with [Spanish IBEX and European Eurostoxx (Amsterdam, Brussels, Paris)]. Thus, I've not much to comment on the American markets movements, though I follow them from the distance. Every blown and wave originated over there is reaching this shore at light speed, as you know well.
TM, you seem to enjoy your daily work, which is a great achievement. Enjoy also your earning, I mean, your family and house! Looks like paradisiac. And enjoy yourself. In three generations, few of us, if any, will be remembered but in a few photos, videos or lines fading off everyday passing by.
Regards,
Jose
Regards,
Jose
That article doesn't get to the real impact of Obama's policies.
Obama is targeting individuals and businesses that make the biggest contribution to our economy.
We will ALL feel the pain.
Personally, I will be hurt from two Obama assaults... my small business will be hurt, and also my individual tax liabiltiy will be worse.
I have killed my original plans for some investment in new equipment, and I am not going to hire any new employees, not even to replace those that were let go during the middle of the financial crisis. And I believe my situation is typical of businesses and individuals throughout the nation... multiply my situation exponentially and you will understand the impact to the nation.
Because many businesses like mine are not going to hire new employees (or purchase new equipment), the cumulative national damage is HUGE. Obama doesn't understand this. If there were more jobs, there would be a much larger tax revenue stream and no need to raise taxes. In addition, there would be an ability of those employed individuals to spend money on housing and consumer goods. The economy would get healthier.
And, the notion that $250K income defines someone as being rich is insane, and a politically motivated lie... and a dangerous one at that, as it targets and punishes a group of Americans based on financial demographics that are misrepresented for political gain.
TM
Isn't that the truth. I'll assume the $250k will be in regards to taxable income, not gross income. That will cause those in on the bubble to do what they can to stay under $250. Meaning, they may attempt to book less sales (self employed), defer more income income or do whatever they can to make sure they don't get soaked by being over $250k.
I find it's more of a populist plan. Most don't make that much so, the masses think it's a great idea, though if you run the numbers it will probably hurt more than it helps. Your comment in regards to how are running your business is right in line with the business owners I know. They're not happy one bit.
...I keep stoically watching ups and downs of my portfolio exposed parts, correcting them only from time to time. I'm not in a hurry to collect benefits...
TM, you seem to enjoy your daily work, which is a great achievement. Enjoy also your earning, I mean, your family and house! Looks like paradisiac. And enjoy yourself. In three generations, few of us, if any, will be remembered but in a few photos, videos or lines fading off everyday passing by.
You are wise, without a doubt.
I have made a decision this morning that is unusual for me. You will appreciate this.
After this latest round in the stock market, I have decided to allow my broker to use "my half" of the funds that we had previously split between us in our little stock market competition. I want to relax and stop spending so much time focusing on the markets every day... like you and Charlie and most of the others around here. There is something to be said for that.
Circle W also posted to that effect in the past. I think it will be a healthier experience, at least for a while. I hope I can do it, and I bet it will be difficult at first to "let it go" for a while.
He is a smart broker, and he has supplied me with a spreadsheet and we have agreed to the strategy of investing in a large diversified selection of stocks, incrementally over a period of time. I have allowed him to invest $500K in just equities, and instructed him to keep the majority and rest of my portfolio in fixed instruments that have been providing a really good secure return.
Wow... I hope I don't go crazy. Or, perhaps it would be more realistic to say that I've already been crazy, and now I get to chill out like the rest of you guys!
TM
Thanks for the feedback Keith.
Yeah... I can't imagine any business owner supporting Obama's policies.
I like your terminology of calling it a "populist" plan.
TM
Alexis de Tocqueville 1835
Obama is targeting individuals and businesses that make the biggest contribution to our economy.
I posted that article only to point out the facts about the various tax brackets. I did not post it to start another debate. We already went through this a couple weeks ago.
bought in at. First call date is 2013. I was hoping it would go down some yesterday so I could buy some more but it went up 20 points!
You might start lining up some tax free bonds or bond funds to keep your tax liability down. I am not sure if they would count the tax free income against the $250K limit or not. Anyone know?
What concerns me is that Obama might start to also use a "net worth" figure to determine if you are "rich" or not in an attempt to get at our savings, etc. I think I heard Geithner mention something like that very briefly.
2013 LX 570 2016 LS 460
Agreed. Three factors are involved which are extremely difficult to conciliate: local economies in need of work force; families looking for a better life (a human desire good in itself); receiving nation/human groups looking to preserve their identity.
Regards,
Jose
Euro currency depression was caused, in great part IMO, by speculators betting for it and then being followed by some economical gurus & journos strolling the suddenly fashionable path. Recovery is, IMO again, a fair rebound to some extent, yet pushed by Chinese Gov. and other speculative movements in the opposite direction.
Regards,
Jose
Be careful with "stress test" results. Taken indistinctly may be it doesn't mean much, yet Bank by Bank can be very informative if you are an investor.
They were made to stop speculations bleeding confidence on distinct European Banks by way of daily short-time bets (as for instance, those of Deutsche Bank on Spanish Banks!) and never-confirmed but never-stopped rumors attributed to German Gov. by Financial Times of Deutschland on the same matter, that is, that some big Spanish banks were on the verge of bankruptcy. Then, stress tests were assumed and prompted by European Council after Spanish Gov. menaced of publishing by its own the results of the Spanish Banks to unveil their solidity as compared to others, in particular the Germans. This is what was hidden in the stage set.
Then, European Council gave a few directions for the stress tests to be conducted and developed to particular extents by the Economic Authority within each Country, as agreed with Ms Merkel, who didn't wanted the tests. As a result, some Countries were very rigorous, some were not. Those which were, applied the tests to as many Banks (and local Saving Banks) as possible, and published full data on their assets, they including toxic investments even in Sovereign debt. Thus, investors and real searchers browsed Country by Country and Bank by Bank looking for detailed figures, which is the important stuff, not what economy journos were publishing in the headings.
I've mentioned Spanish Banks. All Banks and 96 % of Saving Banks were tested in Spain. All of them were obliged to expose all figures, which are published. Five Saving Banks failed the test, which are now in process of re capitalizing. In the whole Europe, Bank # 1 as tested is Banca March (Spain), # 2 is Banco de Santander, # 4 is BBVA (Banco Bilbao-Vizcaya-Argentaria, Spain). French and Swiss (only the USB was presented as an entity) Banks passed very well the tests as well. Germans Banks tested were few and some 'important', among them Deutsche Bank, passed only by the skin of a teeth. GB Banks tested were only four, and they passed all, of course. In recent days, Santander Bank has bought 12 local branches of the Bank of Scotland; the bought branches are placed in Scotland and England.
As a whole, stress tests alleviated the pressure on many institutions which were under unfair suspect, and consequently the confidence on the European economy, in particular of those regions suspected of extreme 'weakness' grew.
There is a lot of trouble in European economics, but please don't buy everything which is published in the media. After all, averaged journalists are mainly interested in chasing stories and secondarily may be in the truth. And unfortunately I'm not joking in this.
Here it has been posted that one of the worst things in the current global state of affairs is the bad quality of politics and the politicians. A fair stating, IMO. Yet the 4th Power current quality is also worsting matters. Democracy is and will be the looser.
Regards,
Jose
In this case, all the investing is done within a tax-deferred retirement trust, which I initiated in 1984... so there are no tax liabilities to be concerned with until the day comes that I finally take some of the money out of the account.
What concerns me is that Obama might start to also use a "net worth" figure to determine if you are "rich" or not in an attempt to get at our savings, etc. I think I heard Geithner mention something like that very briefly.
OMG... say it isn't so. More attacks upon successful Americans. Obama is seriously misguided.
I can't wait for the next Presidential election to give him the boot.
TM
Sorry Charlie. Didn't mean to upset you, nor violate your good intentions.
TM
Has anyone ever seen anything good come out of a tax increase, let alone one in this type of an economic cycle?? And again the reason this is an important discussion here is that the foundation of long-term growth, solid investing and a good stock market is jobs. We've reached the point where any talk of stimulus is now a reminder that the economy, and the feds fear of it, is more fragile than any of us reallize. What our government is doing through all it's expansion reminds me of a doctor who has all the right meds and is clueless who to give them to. And when that doctor runs out of those meds - everyone's health fails.
To all: Thanks for all the positive comments on the pool and yard. I actually take even greater pride in the fact that I planted those crape myrtles myself and selected or planted most of the other shrubs in the yard also. Growing up in Brooklyn as a pure city and school yard sports oriented kid I knew nothing about trees or plants and never thought I'd ever have any knpwledge.
Leave it to Obama and Pelosi to create a "before you die estate tax". And how do we define net worth. Most folks who have high net worth have it tied up in valuations of assets, real estate or the value of their businesses.They often d'ont have the ccash in the bank. So what do folks do - sell assets to pay tax or borrow to pay the tax so that Government can throw more money down the toilet. I hope Obama understands what t estate tax did to families that were victimized into selling assets just to pay the estate tax. This was especailly true of farmlands that have now disappeared from the country side.
I'd like to think a net worth tax is a rumor or a joke but with this President's lack of financial knowledge and discipline, it's a distinct possibility. I pray to God we have a Republican congress to thwart him by year end.
Impressive, I'm still struggling at keeping my grass green;)
Has anyone ever seen anything good come out of a tax increase, let alone one in this type of an economic cycle??
Well, if you watch the bone heads on MSBC, they come up with all types of BS..LOL
The whole issue here with this income level is that government acts (and folks that never ran a business think) of the income as W-2 income where every dollar you reported is what you got in cash.
Unfortunately, that seems to be the mentality of much of the public. They fill their car up with $50 of gas and think the gas station owner and/or the oil company just pocketed $50.
Well, maybe it's time I start marketing and selling fire proof mattresses.....any takers?;)
Regards,
Jose
2013 LX 570 2016 LS 460
Regarding the banks...I just can't believe everything is especially healthy there, or any healthier than the US anyway. I've read a bit of criticism about these "tests" being too easy and manipulated for political gain.
Democracy...doesn't exist when the masses are brainwashed and greedy corporations and greedy politicos fight for dominance. Maybe a few dozen million more non-assimilating immigrants and some more public debt will cure things. Right.
Your yard and pool area is beyond beautiful Len. BTW, in contrast to your heat and dryness we have had heat and extreme wetness. I'm pretty sure that Ames, IA has been on the National News the past couple days. Hilton Coliseum area (at Iowa State University) was surrounded by about a 10-12 foot deep lake. Hilton floor was under 8 feet of water yesterday with severe damage. This is a summer like no other here in the Midwest (especially IA). Usually, when it is this wet (record rainfall), it is also fairly cool in the summer. We cannot find any other summer since records have been kept (about 140-150 years) that matches this one. Almost every day, the dew points are way up into the 70s and sometimes reaches 80. That is ungodly humid. This keeps the night time lows very warm but the day time highs don't get too hot (mostly in the upper 80s to mid 90s). This morning, the low was 77 and that tied the record for the warmest minimum. Most mornings recently have been in the low 70s only because it has been raining (strong storms) late at night and the air cools down to that level. It did not rain last night and the low was 77. If it does not rain tonight the low will likely not get any lower than about 80. The dew point this afternoon is 78. These dew points are typically higher than they are along the Gulf Coast.
I'm sure I have discussed this here on prior posts, but the THE main reason it is SO humid is because of the "Sea of Green Effect". The vast and very densely populated corn and soybean plants spew out (evapotranspiration) a tremendous amount of water vapor into the air. Thus, it is a self perpetuating effect of "wetness begets wetness". The climate for the summers here in the Midwest has definitely gotten cooler and wetter the past 30 years or so. But this is ONLY in the summer months of June through August. We have not had a record high temperature in Des Moines since 1988 in these months. Every other month of the year has seen numerous record highs. We have obviously had record warm lows, however, due to the Sea of Green Effect. In my opinion, the only way we can have a genuine drought in the Midwest in the summer is by starting out very hot and dry in April and may so that the crops cannot get off the ground. This greatly reduces the Sea of Green Effect. This is exactly what happened in 1988, out last genuine drought in the summer. I'm sure you have all heard by now about the extreme heat and drought in the Russian wheat country. Well, there is no Sea of Green over there. Wheat is a totally different type of plant. BTW, Moscow has reached 100 degrees for the first time ever. There have been at least 7 record highs in Moscow this month and 19 for the summer so far. For the Globe as a whole, this will likely be the warmest ever (since reliable record keeping).
Regards,
Jose
I can certainly inform you with the exact method I used to add "gold" to my portfolio. But, there are a number of ways to invest in gold, and I suggest you look at all your options before you make the decision. Heck, there are some investors that keep gold coins in a safe deposit box. You'll want to choose the investment method that is most comfortable for your investment style and strategy.
I invested in gold in two different ways...
First, I purchased shares of GLD, which is the trading symbol for SPDR Gold Trust, SPDR Gold Shares... it's an ETF with the objective of closely following the actual price of the precious metal. It's a terrific way to invest in gold, IMO.
Here's a link regarding SPDR Gold Shares (symbol GLD):
link title
Second, I purchased shares of Agnico-Eagle Mines Ltd., symbol AEM. This is a gold producer with mining operations. There are others as well, but one reason I like this one is that it doesn't have a lot of exposure to politically sensitive locations that could cause its business to falter. It's a strong company that provides another method of investing in gold.
Here's a link for AEM:
link title
Be aware that gold has had significant gains recently, and that it could be getting close to a top soon, although people have been saying that for a very long time. Regardless, do your homework before investing.
Also, this is interesting... my broker called me a little while ago to inform me that he sold all of my gold investments!... he insists that owning gold is risky at this point in time, and he had a better way to accomplish it. I really don't know what he has done. Even the experts don't agree with each other at this point in time, but I do tend to think that there should be some reasonable level of gold in every well-diversified portfolio.
So... regardless of my broker's point-of-view... you now know my original and exact method I used to invest in gold.
Good luck.
TM
No worries... the love runs deep.
TM
No reason to hesistate with your suggestion.. I appreciate it.
I can always jump in if there is a reason to do so. And, I still have 24/7 access to my online trading software he has provided for me. So, I can make any investment the moment I really feel compelled to do so. In fact, I can even access all of the investments he has made on my behalf... so I have the control if I need it. But like you suggested... "after taking a break".
Your feedback is always valuable. Thanks!
TM
Guilty as charged.
TM
Yeah, I happened to be flipping channels the other day and caught some of Cramer, he was talking highly of AEM and I think he had their CEO on his show.
Anyway, I already knew about GLD, so I put the two together.
What do you think you will do?
TM
That said most of our gold coins were bought below $300. Some before the 1970s run-up on precious metals. Buying at $1200 per ounce seems shaky to me. The other hitch is finding buyers that are not intimidated by the state. There should not be any tax on currency. Gold bullion is currency. Some see it differently. My seller/buyer considers it like money. He also does foreign exchange.
This one may surprise you given what you know of my background, but ages ago, early in my career actually, I worked for Consolidated Gold Fields of London. But their US ops I worked on were more related to steel, oil rigs ( a company called Skytop Brewster) and waterwell drilling equipment (a company callled GEFCO).. ConsGold as it was often called had a US gold mining businesss named Gold Fields Mining Corp but I had nothing to do with that. But because of someone being ill I actually was called in for data analysiis and took a small role in their buy into what was then a rapidly developing company which is now very well known - Newmont Mining. I believe at one point they had about 30% of Newmont. But the British market had no faith in management and the British tabloids made a mockery of the then CEO - Rudolph Agnew if I remember right. D'ont know what they ever did with their position in Newmont but eventually they were acquired by Hanson long after I left. I found this business so boring and left after 2-3 years or so but what I'll always remember it because it was the high inflation period where the Hunts tried to corner silver and Gold reached $840 an ounce while Paul Volker let the prime rate jump to 23%. The things I did later are just so distanced from that and the media and media/marketing information business was so much more suited to me.
Well, I passed on GLD when it was $90/shr thinking Gold was to high, so I haven't done anything in regards to gold. Sitting on my hands has been expensive.
AEM looks like a great way to invest in gold and combining it with GLD is interesting.
I hope you forgive me for all my Obama posts. Like Tag says the love runs deeps in this group. I've known you guys and Tony so long that you guys feel like best friends to me.
Thanks Gary... you are right. Gold frequently seems to be a popular investment choice when the markets are collapsing... but can also go up when the markets are going up... probably because it represents some form of "stability" in the face of volatility and uncertainty. Afterall, it used to be our monetary "standard".
Your information that coins are a better invesment than the gold stocks is interesting, and I really appreciate it... afterall, you have many years of experience with this.
I might look into getting some of those coins in the future... at a time when gold prices take a big hit, of course.
I am sure that Houdini also appreciates your post.
TM
Wow... flashback! What a different world we live in now. Just a different type of government insanity, I suppose.
I remember the Hunts scandal. Someone told me to buy silver, and I fell into the whole trap and actually bought bags full of silver dollars. I also remember selling all those coins right before the bottom fell out. Man, I was lucky. Many folks were not so lucky.
Just think how many different financial scandals there have been since then. They never seem to end.
TM