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- Apr 14, 2006
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So you suggest we sell our gold and buy stocks ?
I came across this chart yesterday and found it interesting. If one believes in reversion to the mean, it would seem best to avoid gold and long treasuries right now.
I came across this chart yesterday and found it interesting. If one believes in reversion to the mean, it would seem best to avoid gold and long treasuries right now.
A Pantywaist Investment: While gold is typically considered a source of investor refuge in periods of political and economic turmoil, it represents a pantywaist investment for “real men”. If financial turmoil slips into global chaos the “basics” become: food, potable water, breathable air, energy, guns and ammunition.
This article was inspired by an article in the WSJ by Jonathan Cheng, called “Investors Head Bunkers, Driving Up ‘Shelter Shares’” (August 28, 2010) which explained the goods to be found in any respectable fallout shelter. I have narrowed his list of 18 stocks and added to the list to develop a list that focuses more on pure survival goods.
How much is the dividend? What does it pay?I have never bought gold and do not intend to do so in the future.
How much is the dividend? What does it pay?
That phase works pretty well too!Thus a bias toward small cap, value and emerging markets. Now I am paying more attention to income and dividends.
It seems to be working pretty well. I am looking forward to the distribution phase--someday.
My thinking on gold is also shaped by the argument, made by both Warren Buffett and Jeremy Grantham, that gold is inherently difficult to value. The price of gold is far more behaviorally driven than are prices of other asset classes.
Jeff Gundlach recently suggested that here is potential for additional upside in gold to the extent that investors become convinced that gold is an asset class that every portfolio should have at least some allocation to, although he is also concerned that gold has become too ‘faddish.’
I came across this chart yesterday and found it interesting. If one believes in reversion to the mean, it would seem best to avoid gold and long treasuries right now.