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Bubble or what?

Big Al
November 18, 2013

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34 Comments
    CFS
    Nov 18, 2013 18:25 PM

    There is a bubble in Silicon Valley in almost everything from start-ups to real estate.The exuberance there is palpable if you look around and talk to people. Money is flowing and many rich twenty-somethings are spending and investing very freely.

      Nov 18, 2013 18:28 PM

      Well, for what it is worth, this definitely not twenty-something is not in that category.

      We will be in Sanoma Thursday thru Sunday morning. Any suggestions for unique restaurants!

        CFS
        Nov 18, 2013 18:56 PM

        I just flew back to IND (and thanks be to my pilot who circled for a couple of hours and then deviated to refuel at Dayton, rather than try to try to land among tornadoes, I’m still alive.) I don’t have any great suggestions for restaurants, but most of the wines are excellent…..even the cheaper ones.
        If you are ever near Pompeii, I just had some of the best Pizza there. It’s come a long way from the old Italian idea of using up tomato-based spaghetti sauce on stale bread. Watching some of the twenty-something Sophia Loren look-alikes sure beats the frumpy Hoosier waitresses in these parts too. I’m just back for Thanksgiving and then off again for fun in the Red Sea, then the Emirates.

          Nov 18, 2013 18:29 PM

          I actually know most of the wineries pretty well become the professional practicing alcoholic that I am. Some of the folks I have met in the business, most at least 2nd or 3rd generation are very interesting people.

          Thanks,

          Al

            CFS
            Nov 19, 2013 19:09 AM

            Given that there are over 500 wineries in Napa/Sonoma valleys, that’s an impressive feat of drinking.

            I was in France for a few days and stunned that they can still produce table d’hote wine at 0.85 euros per litre. It was much cheaper than even beer! Since beer is cheaper than Coca cola, one wonders whether the French have their priorities better than Americans.

    Nov 18, 2013 18:28 PM

    I like the Shiller PE Ratio. It is a better indicator than the standard measure.
    http://www.multpl.com/shiller-pe/

    Nov 18, 2013 18:41 PM

    So where was this posted?

    Nov 18, 2013 18:47 PM

    Great commentary you guys. Very interesting. I cannot add anything to it today.

      Nov 18, 2013 18:30 PM

      Not really too much anyone can add is there?

    Nov 18, 2013 18:58 PM

    Big Al,
    Dont be sorry…be happy?…..I guess….I am right where you are. I guess you were acknowledging the fact that I do to love this countryv- the greatest country on earth. Unfortunately OUR PILOTS are driving us into social and fiscal insanity. Within a short 70 years – post WW2 – “THEY” our government has really screwed things up for the American people. Unfortunately, the average American is TOO BUSY watching american “Idolatry” or the “voice” to give a RATS ASS. Sad….damn sad!

    CFS
    Nov 18, 2013 18:10 PM

    Marc;
    You need to travel more. “greatest” has been over for several decades now.

      Nov 18, 2013 18:58 PM

      CFS,
      It is funny you say that. Yes, my traveling exposure is very limited – too tied up. However, I would agree with you….The decline has been going on for quite some time. My point was that 70 years is and AWFUL SHORT TIME TO screw up a really profound document ( US CONSTITUTION) and rip it too shreds – metaphorically speaking, of course. Unfortunately, it is not going to stop.
      Continued safe travels, CFS and WELCOME BACK!

        CFS
        Nov 18, 2013 18:18 PM

        The US is still a Great country compared with most others.
        It is just so frustrating to see the slippage and being totally unable to ameliorate the situation.

    Nov 18, 2013 18:13 PM

    http://www.youtube.com/watch?v=92R0udQuVq0 EUROPE IS LOST DON’t TRUST THE BASTERS !

      Nov 18, 2013 18:41 PM

      Pretty interesting Franky.

      I have to assume that you are not in favor of the U.S. of Europe!

        Nov 19, 2013 19:35 AM

        FAVOR off diss new world order NO STOP TINK USA EUROPE CHINA RUSSA DAY ALL 1 !

    Nov 18, 2013 18:42 PM

    Al talks about what his Dad taught him, my Dad taught me that a fool and his money are easily parted and I believe that includes all things, and when the government has employed mostly people who can’t make it in the real world, we are really in need of help. DT

    Nov 18, 2013 18:21 PM

    Bird…From the first Bubble thread continued. I agree with your prognosis 100%.
    I’m trying to swear and drink less (or stop) too! We would probably see eye to eye on a few things LOL. Typically a huge new high and does not exist. But like you say internally there are stocks going super nova stupid. Reminds me of Ballard and Nortel boom days. I had to talk people out of buying but I sure as hell did not know where the top is. Its just not worth playing with dynamite Far’s I’m concerned.
    I have a buddy who I agree with on Gold and was buying at $290 and we think it would be normal to see a correction to about $1100 and then resumes. When all the reasons run out to own that yellow heavy crap it will move higher we thinks. In hindsight I should of dumped my 200oz of physical at $1900 but said I will not sell my long term position. I gots my stupid days..

      Nov 18, 2013 18:42 PM

      Seems like a lot of us are trying to drink less!

      Nov 18, 2013 18:39 PM

      Billy,
      Dont concern yourself with not selling…believe you – me, there were many, many investors that did the same thing. Even Eric Sprott didnt sell. Our time is coming and soon…..not a generation from now….soon, very soon.

    CFS
    Nov 18, 2013 18:53 PM

    I am looking for a further Sants Claus rally/continuation of the general market.
    I further believe Obama will do everything he can to keep yup the general stockmarket and housing until next year’s election.
    Since devil has shown no indication of obeying Constitutional constraints on his powers, it would not surprise me if he partly succeeds.
    I do not believe gold can make a significant comeback while the general stockmarket is booming. One exception being a Comex or LBMA default.
    I am over-weighted in Precious metals and still buying as money becomes available.
    If I don’t make a profit in precious metals, then maybe my son or his off-spring will.

      Nov 18, 2013 18:43 PM

      Kind of my opinion, CFS!

      Nov 18, 2013 18:17 PM

      I am hearing that a lot CFS. People saying that if metals don’t come back or don’t profit that the kids (and their kids) can have the stuff. It strikes me as odd because the idea is akin to acknowledging that prices could take a generation to recover. Now that is what I call devotion to a trade!

        CFS
        Nov 19, 2013 19:00 AM

        One of the great things is that it is difficult for governments to track gold.
        A million dollars in gold only weighs just over twice as much as a million in $100 bills, and actually takes less volume.
        The greatest asset is that it is almost impossible to destroy gold by accident, and it really is not denominated in any specific currency, so it will outlast countries, making an excellent storage vehicle for wealth.

    bj
    Nov 19, 2013 19:39 AM

    P&E ratios are calculated differently–the difference is primarily moving averages, but also sometimes forward earnings.

    http://www.multpl.com/shiller-pe/faq

    bj
    Nov 19, 2013 19:52 AM

    Sounds like Mr. Akerman is describing stagflation–and Al, we’ve been there before. This is not uncharted territory. Thus we need only study the charts for Au & Ag during that time for insight as to what may come for gold and silver.

    Nov 19, 2013 19:54 AM

    Hi Al

    Thanks for stating the obvious at the end of this segment. It was nice to hear. I have a huge amount of my financial wealth in pm’s. Speaking for myself I know I would be so much better off if the price PM where to fall in account of the USA having a healthy economy . I would trade my PM’s for that any day of the week. I secretly wished that the stock market would thrive as an indicator of a healthy economy. Unfortunately the stock market is thriving in spite of the economy. I say that because if we had a healthy economy not only I would be doing well all of my neighbors and friends who don’t have pm’s would be better off. I can only do as well as those around me are doing. Remember that PM investors only make up a small segment (I think less than 1%) of the population. Even if PM’s go to zero, I am upright, above ground and still have my great health. I have a home to live in with clean water coming in and dirty water immediately going out (and I can make that water and the air inside any temperature I desire).
    Life is and will be great no matter where the PM prices land or the equity go to. Glad to be alive, thank you for your show and blog.

    Nov 19, 2013 19:31 AM

    SD Marc: cheers and I here that. Bears breed Bulls and it’s around the corner.
    I was happy as a pig in Sh*t to get my 3000oz silver back to the store @$49.
    Too volatile 4 me.