Just for you Bird from Chris
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Possibly, but I think that Bird misinterpreted what Chris said.
AL IS ? Chris drinking ? PARTY DAER ? DANCING WITH THE STARS ? https://www.youtube.com/watch?v=U-XQ2hwBcbY
My question was about strip Treasuries (and it was ignored three times now). Rick stated that returns on those ranged from 22% to 30% and Chris noted that returns this last year were as much as 15%. Since I am not getting this because I am obviously a moron where bonds are concerned because I don’t follow them at all then maybe someone can explain how those pay that well. Or is it just bullshit?
Birdman,
Got this from investopedia.com
Definition of ‘Treasury STRIPS’
An acronym for ‘separate trading of registered interest and principal securities’. Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no interest payments because they mature at par.
****
Believe Chris was talking about long term Treasurys – so far this year have returned 15%. That includes the interest. Believe it was only Rick talking about STRIPs, and they return no interest. HTH.
Thanks Derek. I just wanted to know how they arrived at 30% since I could not get those numbers.
Man, I must just be in a bad mood today. But come on….three times.
Maybe I just need a new chair. My back is killing me. GD old age.
Very seriously the answer is accupuncture. Trust me, I know!
I might just give that a try Al. Never had this problem before so its a new thing. I was feeling utterly miserable yesterday. No damn reason at all. It just came out of the blue. Sorry if I sounded cranky but I think i must have been getting me down. Nothing that booze would not cure though!
Speaking only for myself, I was referring to an ETF that owns Treasuries of the longest maturities.
Thanks Chris.
Opposing thought to Chris:
Why should an international company bring money back into the US, where it might be locked in in the future by capital controls.?
Secondly, if the International Company wants money in the US, it makes more sense to borrow it in the US.
Third, We are talking about International Companies here. Why should not such companies be seeking opportunities in higher growth countries than the US?
Fourth, for purely investing the money in bonds or stocks, does an international company really believe the best opportunities lie in the US?
I don’t think many companies will fall for a tax holiday.
Capital flow considerations will override, and the possibility of cash being locked in the US will be a concern.
Mr. Temple certainly has higher trust in the US Government than I do.
(By many, many orders of magnitude.)
He is certainly correct in me never voluntarily giving the US any of my money.
I already refused morally to buy treasuries.
You gotta do what you gotta do.
Let me know when you are going to be spending some time in Sonoma.
I don’t know. I flew back to Indiana from Sonoma last week.
The weather here is getting hot and humid, so I might just head over to England.
I have nothing booked though at the moment and I’m trying to sell some property here.
CFS obviously has never read my FBI file
Can you post it?
The American people are docile? Or Gullible, thanks to the dumbing down of education.
That happened many years ago.
RELLY so all ok NOW ! ?
Always has been all okay.
most Americans are on drugs, legal and illegal, or alcoholics, workaholic, or just plain stupid……………….
I don’t know about bail ins not happening in Canada.
Harper putting it into law definately shows its possible to me.
You are correct bb, its Harpo’s work
CFS, I believe your a US citizen, regardless of you floating around in your yacht some where in Greece the IRS know where you are and every cent your spending.
And the time is coming when you won’t even be able to give cash tips to all your servants, cashless society is coming, the govies want tax from all transactions.
And I’m sure your a big tipper too!
I have a funny gut level feeling that you have CFS pegged wrong Original.
No say it isn’t so Big Al, he’s not a big tipper…….dam that’s where I went wrong, I’d be long Dali’s if I just stopped tipping.
I just like winding up the old wealthy bugger, no harm intended, I’ve just never come across nayone who doesn’t have enough walls for his picaso’s….wow!
Original,
I wish I had a dollar for every time you have mentioned CFS’s Dali’s and Picasco’s!!!
Good Grief! Give it up man! The sarcasm is getting very stale. If he has them, so what????
Jody D
JJ has a pool though. I feel resentful. I don’t have a damn pool!
Thanks for taking the time to post Jody, really learned a lot, you should post more often, very informative!
You need to travel more jj.
The US may try to become cashless.
I can guarantee all of Europe will not. Not in my lifetime, or my son’s lifetime and probably not in his children’s lifetime.
google it CFS a cashless society around the globe is coming all based on global government looking for tax dollars
Governments may want it. So what.
The government of many countries will not buy hollow-tipped bullets to control there slaves.
Many peasants have learned the lesson of terrorists, first learn from American War of Independence, taught by the OSS in Europe during WWII.
Keep your head down,disappear into the shadows and disobey the power of Government.
Sabotage, snipe. Been done for a long time…..Remember Robin Hood?
William Tell?
Even Edward Snowden?
Interesting article on this the other day at International Man, on FATCA being a precursor to GATCA, the ‘G’ meaning ‘global’.
I saw that article. I never even flinched. Casey Research was bang on the money with that article and they are ahead of the curve. It is already a reality in my neck of the woods and it is taking the place by storm. Virtually EVERYONE is hooked into it in the cities. I mean EVERYONE. All you need is a crappy old cell phone to get connected. Nobody carries cash at night now. I honestly believe this is the test grounds for perfecting the model. I mean beta testing before they roll it out everywhere. Has nobody else here ever head of M-Pesa? Maybe Casey will do a special article devoted to just this topic because it really is mind blowing that the whole economy revolves around no cash in Kenya now.
You are correct JJ. A cashless society is absolutely, absolutely, absolutely coming and it is right on the horizon now. Within the next ten years we will have migrated to a system worldwide that has disposed of cash for most transactions.
Maybe CFS has never traveled to Kenya where they developed and implemented a cash transfer system run entirely on the mobile network called M-Pesa. In that country it is estimated that a quarter of all the GNP is now transacted cashless by phone.
The government has recently taken steps to impose laws outlawing cash for certain transactions altogether. This is primarily related to the taxi system that is both seriously corrupt and at risk of theft due to cash held by drivers but we can well imagine that other parts of the economy will come under the new directives.
At last count more than 70% of the population had migrated to cashless payments. It is easy as pie. You just go into an agents office of the local mobile company and get your phone loaded after contributing the minimum amount. After that it is basically as simple as making a text to mobile transaction (pin required) to make payments. People are doing this to buy everything from utilities to groceries to street vendor wares.
That’s right. You can shop by phone even from the scruffy guy sitting on the curb selling lettuce and carrots. It is actually amazing and silky smooth. There are transaction fees of course but they are much lower than the banks charge for withdrawals by ATM and the system allows cash transfers faster and cheaper than Western Union. They even have a bank savings feature that pays interest now.
And the beauty of it is that the whole system is run by the local dominant phone company and not a bank. So it just makes you wonder how long it will be before we are cashless all over the globe. If poor Africans can adopt this system then obviously it is accessible to all. You do not even need a smartphone. Any crappy old cell will suffice as long as you can still read the screen.
Well as it turns out we will not have to wait long. M-Pesa is being rolled out in dozens of countries and it is already in Europe, Japan and elsewhere. I just read an article explaining that there were 2000 different versions currently in the works across the globe so this thing is exploding.
So far it is hit and miss but the popularity is growing gradually and it is being embraced mainly in poorer nations where few people have bank accounts. I was really amazed when I first saw it in action. Very efficient and easy to use. I think the number one motivation behind the idea is its simplicity. There is certainly a great motivation for the phone companies too.
Why? Well it makes money hand over fist once you get subscribers using it as each transaction carries a fee. And that is why it’s coming to a phone company near you before two more years are out. So get ready. A cashless payment system is here now and proven and looks like it will eventually dominate the payment system altogether.
Forgot the link……..
Kenya’s mobile wallet tech expands to Eastern Europe – M-Pesa has arrived.
http://tech.fortune.cnn.com/2014/05/09/kenyas-mobile-wallet-tech-expands-to-eastern-europe/
Well Birdman sometimes world travellers think they know everything about everything, I have a pretty good view of the world from my cardboard box and you are certainly boots on the ground in Kenya
CFS only stays in the best hotels so he misses all the action. When he gets down and gets gritty and comes to Africa he will get a whole new take on what it means to live a little closer to the edge. This M-Pesa thing is seriously great stuff though. It is hardly known over on your shores yet but once the computer geeks get their hands on it the sucker will fly. Why would it not since its such a cash cow. Moooooo!!!! Just a matter of time before there is an IPO rolled out for a new service…..and I will be a buyer.
Time will tell.
I think you are wrong, Bird.
No man, I am not wrong. I am only early. If you don’t know about M-Pesa yet you better find out quick because this is the future. Look, after 6 or so years of operation in Kenya it has already been taken to the stage where taxis will soon REFUSE to accept cash by law. This is now legislated. Can you not see where that is going? There was just a little tiny jump from wide public acceptance of cell-payments to a legal obligation to use a cashless system and that was breached without a whimper or complaint. It matters here too because everyone uses taxis as so few have autos. I am betting in the future you won’t even be able to buy used stereo equipment from your best friend with cash anymore nor will you be able to pay the parking meter unless you have mobile-phone cash. Just watch man. If this is the pattern for the future it won’t even be optional in the end. If you read just one single link today I strongly encourage you to read this one and look into M-Pesa for yourself.
Kenya Outlaws Cash Payments on Bus and Matatu’s beginning July 2014
Matatus sign to Safaricom’s M-Pesa ahead of cash fare ban — The Daily Nation
http://mobile.nation.co.ke/business/M-Pesa-Safaricom-Matatus-Payment/-/1950106/2133510/-/format/xhtml/-/dev9pt/-/index.html
So another form of debit cards!
And check this article out CFS. The topic is P2P payments made by cell phone. Just came out today.
The Quest To Kill Cash: Getting People To Abandon The ATM — Business Insider
http://www.businessinsider.com/the-quest-to-kill-cash-new-apps-are-finally-getting-people-to-abandon-the-atm-2014-5?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29
Since I am on the topic of telling you about the future CFS I will give you a tip that you won’t read anywhere else. This is about the cashless society we are heading towards and what you need to do to respond. So it is important…….
What you need is cash. And lots of it.
Now that might strike you as strange. Why the hell would you need cash if the economy has gone all electronic? And the answer to that is simple. You see once the Treasury and the mint stop producing notes and coins the supply will come to an abrupt halt.
What will follow is a period where paper money is withdrawn from the economy via the banking system. There will be all kinds of ways that are dreamed up to get you to turn over that dirty old paper. Free checking accounts or other promotions maybe. Contests and gift prizes. Most people will get sucked right in and before you know it there will not be any paper at all. Except that stored by folks who understand the meaning of a currency and why even a dead one can retain value for years after it has been effectively outlawed.
I suspect the underground economy will thrive on it for decades. Prices and premiums will be high. Demand will soar as the rarity of notes increases and in the end cash will be better than gold to some people. Liquid, transportable and lightweight, it will become the language of those living as social outsiders. Laws might eventually be enacted making it illegal to carry it altogether.
So put as much as you can into a shoebox. Choose good quality new notes as a preference so authenticity is not in doubt. It should pay off long term as an investment class all its own in the brave new world where the Central Banks have all the gold and silver and the social outsiders offer outrageous premiums for good old fashioned paper money.
Pretty inevitable, Bird
It appears that M Pesa is part owned by Vodafone India, part Vodafonecom, part vodafone plc, so there is no chance of an IPO soon.
Only better Al because you don’t need an ATM machine or a card reader. These things even transact when there is no power because it is all on the cellular network (and they are all backed up by generators here). This is a very big feature. Recall how in Japan after the Tsunami nobody could buy gas, food or supplies because all the power went down. They still had cellular access though until their battery ran down. So in an emergency M-Pesa can be a life saver in that commerce does not come to an end. For Africans in developing nations where power is unreliable at best this has been a major feature. The electronic record is your receipt. The other thing is that you can make very, very small transactions and the fees are percentage based rather than at an ATM which often takes one or two dollars flat rate. Well for poorer people who need the minimum 20 dollar withdrawal that means a two dollar fee is actually 10% of the transaction cost. With M-Pesa it is as low as 1% no matter how small your expense. People use these to buy coffee and haircuts. I have seen them used for bets on soccer games. It is a crazy world. Once you try it though it becomes pretty natural and you never worry about losing cash anymore or getting pick pocketed. Neither do you need to make change because you just punch in the exact trade amount. Security features are pretty good too. Losing your phone does not mean losing your money. But yes….they are a form of debit. That is because the target audience in Africa, Bangladesh, India and elsewhere do not have traditional bank accounts in most cases. The system targeted for the West will obviously have credit features as that is what people are accustomed too. In Kenya though the system is now being modified so that people who have never had a credit history of any kind can begin to build a credit profile. The idea is that eventually customers can be ported over to more traditional banking. This thing is pure genius Al.
Cannot be IPO’s? You have got to be kidding me, man.
Think more creatively CFS. You never heard of licensing? How about a spin off from the parent company? Any number of ways exist to make a standalone company if Vodaphone or a licensee chooses. I really CANNOT believe it has not been done already because this thing makes money hand over fist and minute by minute. Of all the idiotic hair-brained profitless business’s that hit the IPO market and get snapped up by investors this one is not even on the consideration list yet even though it is proven to return billions already. That last article I read said that the system processes up to 60% of Kenyas GDP! And yet it has the potential to be MUCH, MUCH, MUCH BIGGER than even Paypal which is clearly a smash success. Anybody not understanding that the serious money is all in the transaction business must be brain dead.
In all probability in 7 months time I will not be under US jurisdiction. I want to give up citizenship of this corrupt country, but retain the right to visit.
The dumbing of people has ben going on a lot longer than the states have existed.
But in the states the people allowed the creation of the federal reserve in 1913.
Pretty dumbed down, still are. In Britain and Canada people actually believed they would be home by Christmas in 1914.
Dumbing people down has been going on for centuries, maybe even thousands of years.
I would agree with you bb
True, but it kicked into high gear in the US about the same time the Fed was created. Youtube norman dodd interview with g edward griffin. Mindblowing.
https://www.youtube.com/watch?v=YUYCBfmIcHM
For more depth, youtube: tragedy and hope john taylor gatto
Birdman, Vodafone is a cash cow.
Why would they need to spin-out?
Why would they want to sell something that is going to be a bonanza, if they don’t need money?
Ergo, I do not believe an IPO soon.
What’s your logic?
Your post is circular and does not make sense to me. It is not a mobile network system we are discussing here. That is an entirely different business. M-Pesa is basically software that runs on an existing network so this is really a financial transaction model that has more in common with banking than telephony. It therefore generates a revenue stream that is both complimentary yet separate from the phone plan network itself. In effect it piggy backs on what infrastructure has already been built up. Who sneers at extra revenues anyway? Cripes, most other business’s would leap at the opportunity to double or triple what goes on the bottom line if they could do it without a huge additional expense over and above sunk costs. In other words, the whole network including bricks and mortar outlets is already in place and ready to go. Not just for Vodaphone but for all cellular companies. What gets added is basically just software. It is how it is being used that makes a difference. I was unaware that Vodaphone was the owner of the system actually but that is hardly a barrier to the entry of others. Anybody could write similar type applications to compete. So it really does not matter if Vodaphone does not use its technology because others can easily enter the space provided they don’t infringe on copyrights and patents. I gather however that Visa, Mastercard and the big bamks have created entry barriers so onerous in the US that nobody is yet willing to jump through the hoops needed to get this up and running nationally. No big deal though. Small players are already entering the market with Apps that basically mimic the process. It is just a matter of time before popular usage results in the process becoming so widespread that a bank or Credit Card company will step in and monetize it under a brand name. Perhaps Bank of America or someone equally strong and established will step in to operate it. Put another way, once someone does bring this process onstream and popularizes it you do not want to be the competition that got left out in the cold because it will eat the revenues of everyone else given enough time.
I would like to get someone on the Show to talk about this. Any suggestions ?
You ever hear the story about the buggy whip makers and how they could not adapt?
No, tell us about them!
Sure Al. How about the world expert on M-Pesa. Senior Advisor and partner of Analysys Mason, Tim Harrabin. He learned the business while with Vodaphone. I have a clip of him on another topic. No idea how you would get in touch with him though. The Yellow Pages maybe?
Analysys Mason’s Operational Consulting and Transformation Services
http://www.youtube.com/watch?v=prC-DmkpRZY
Thanks Bird,
We will try.
I am not saying Vodafone won’t push M Pesa as much as they can.
What I am saying is why would they sell any part of it?
Normal reason for an IPO is to generate money.
Vodafone does not need money. Why sell any part of a highly profitable rapidly growing part of your company?
Makes as much sense as shooting oneself in the foot.
Hey Chris “You Talkin’ To Me”
https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcTU1kdkxpCofNKabY1jnoSGsc19f7HwrhwCqrOOKVKrUWM4EBHH
The destruction of income trusts and transfer of these assets into the elite’s hands after Harper campaigned to protect said trusts showed his hand.
Canadians have been slaughtered and will be again.
All hail the bankers.
You got that right Matt, 110% scum!….they always turn on their own citizens, always!
https://www.youtube.com/watch?v=ZvXS1fESYOM
More big brother….
Not one word can we believe.
What I thought was intersting harper did was shut down monitoring radiation levels about the time of fukashima.
The US food and drug did the same and Canada followed the next week, shortly after Fuc-Kashima….they still are not monitoring the situation.
We now live in a world that suggests if we ignore it, its not an issue…..complete insanity!!!!
I like to talk to people. It is funny (peculiar, not laughable) how different countries seem to place education.
The masses in the US are ignorant.
In England, they have split into two groups: Many absolutely stupid, born of ignorant parents living off welfare. And yet a smaller group, including many recent immigrants who are bright, well informed, who place a high value of knowledge, who still buy and read real newspapers.
In France; although I love that country. it does not yet realise it will be killed by its socialism. But then, I have not been there since the recent election shock.
Then again, the country swung further left, not right.
Germans still seem to value education as do the Swiss.
I’m rambling. Aren’t I.
CFS this just out and its right up your alley regarding US govies turning on its people, enjoy!
hahahaha…….this is got to be the stupidest advice ive heared. WW2 the people still trusted their govt you fools…………..not anymore ……things have changed. Unreal
DAY ARE DRINKING I THINK !
cib, never underestimate the stupidity of people
true jj, but once unfunded liabilities , bankrupt federal programs start crumbling, people are gonna start wiseing up real quick…………then theyll have to begin bail ins
GOLD GO DOWN 75 $ AND YOU ALL GO CRAZY ! Chris FOR you !!!!!!!!!!https://www.youtube.com/watch?v=Qgcy-V6YIuI
Cute — was that old String Bean in his pajamas?
A fried of you ? https://www.youtube.com/watch?v=0LR4N-rsCXc
I couldnt disagree more. Americans are not docile under those coercive circumstances;
Instead of using tax dollars to disrupt other countries for our own gain; end the corporate miltary state and use tax dollars to rebuild our infrastructure & our schools.Thats what leadership is about.
what you think of diss ? Obama is the winner ? https://www.youtube.com/watch?v=4pO1dIKgfPw
the Government agrees, for otherwise it would not have purchased over a billion rounds of hollow points.
Getting ready for the fourth of July?
I don’t understand the purchase, really, because hollow points of the type the US has bought are outlawed by the UN and I can’t see the UN not condemning any country that used them.
Kinda funny Sally. Did you vote for Ron PauL?
Chances are your vote didn’t get counted if you did.
Leadership in the U.S. has no intention of doing well for the people of the U.S.
So many examples I don’t know which ones to choose, I know, ask a veteran.
HALLO ! ( SALLY) Welcome ! No much woman heir Hi ! I FRANKY FROM BELGIUM INJOY !!!!!!!!!!!!! Luck diss ! https://www.youtube.com/watch?v=Kui3__dnOxU
SALLY ?
I’d like to remind Chris that those folks who did cash in their IRA’s and bought gold in 1999 in anticipation of Y2K (me) ended up benefitting in two ways #1) I made a fortune during the next 10 years in gold and silver, and #2) I learned all about the “system” and the Fed, i.e., how it runs, who runs it, and where they are going with it (I’ve seen the future and it’s murder). In the end, I’m much better off being “paranoid” about the system than I would be if I had trusted it a decade ago, and if I have to bet, I’ll bet the US government gets its hands on your money one way or the other.
Must be referring to Leonard Cohen, Mark. Guess I am a fan….
I have seen the future brother and it is murder. Repent…repent….repent!
http://www.youtube.com/watch?v=DsdAnYLvGe4
Great update on todays action from Dan Norcini
http://www.traderdannorcini.blogspot.ca/2014/05/silver-loses-19-level-gold-has-few.html
To preface my remarks… I have always been impressed with Chris and his commentaries. So I start there and acknowledge that he could be absolutely right.
My observation is that over the past several decades, the American public is growing increasingly disenchanted with our leaders and our institutions. We can see this in the single digit approval ratings for Congress. But it goes well beyond that — as there is general and growing distrust for the national news media, the military, our neighbor, etc.
Of course there are still a large number of ‘sheep’ who may fall lock-step into what they are told. But I wonder if there is a possibility to get a very different result. The seeds for such an outcome is rooted in the age of technology, in which the internet, blogosphere, twitter, etc. could make it much more difficult for the government to sell that bottle of snake oil.
I know that the only way they will get their hands on the assets of many, better informed citizens is through force. Let’s hope it doesn’t come to that. Nothing surprises me any longer.
While I am typing, let me make a comment about the precious metals and the mining stocks. Given the action in the summer and year end of ’13 (which exhibited behavior of a wash-out to me — consistent with what I had seen during previous bear markets), I thought the blast off at the beginning of this year was meaningful and the retracement would prove to be shallow.
That has proven to be wrong and the retracement on my stock holdings has unfortunately been deeper than what I would like. That said, having done a couple of more months of research on my share holdings, I am more confident than ever that investors have been very indiscriminate in their selling.
In many cases, cash investment in brining a project forward (the development of the mining facilities, equipment, etc.) is often very close to the reduced market cap of the company now, with the resources priced basically at zero or for very little.
I think that this is a singular opportunity to invest in well positioned junior mining stocks and I am holding my positions with an ever-greater level of confidence.
I am also continuing to use the present weakness to add to physical holdings.
My belief is that there will come a day in the not too distant future in which things begin to get turned on their head and people will have reason to question everything they have come to believe about our governments and the way the world ‘works’.
I think that, ultimately, more money is going to be lost in the global government bond markets than in any other asset, ever. Untold trillions are going to money heaven and not on a trading basis. On a permanent basis.
For me, the physical holdings are then very much like a fire insurance policy. I do not know on which day its value will be recognized — only that I have to have it in position ahead of time. The paper loss that I might experience on the position in the interim is meaningless to me. Quoting gold in terms of Federal Reserve Notes is as meaningless to me as if you were quoting the value in Confederate dollars.
Ultimately, I see the value of gold to be the same in both cases. Priced at infinity.
Have a good weekend.
Hey, don’t even bother with gold anymore Eric. Have you not heard? Guys on this site are making 22 to 30% annually on Treasuries.
Five years in a row no less.
Really great comment Eric, thank you!
Yes. And it is interesting to note that on many precious-metals oriented forums — not just this one — the gold bugs have been beaten somewhat into submission.
Just what I would expect to see during the depths of the bear phase, as the sector grasps for a bottom. From a contrary perspective, gold bears spouting off every 5 minutes on this message board is exactly what I want to see.
This is required before we will see capitulation. That means a day comes when almost nobody wants to hear about gold anymore and that time period lasts long enough that even when prices begin to rise again nobody will give a damn. This site will be like a morgue on that day unless it shifts to another theme.
In any other sector perhaps Birdman, buy so many of these gold and silver bugs are so under water now they will cling to anything suggesting the bottom is in and its off to da moon, the last two years has proved that, the goldgurus keep coming up with reasons as to the next lift-off being any day now, over and over again.
Sprott, Sinclair, Morgan, Turk, KWN these guys have huge ego’s they will be bottom calling all along the way, and they will be the first to say I called it, lol
And at the Top they will be calling for much higher prices based on blah, blah, blah….and the sheeple will get fleeced yet again!
I maybe thick as a blank but I know when I’m not welcome, I’ll leave you BS bulls to your own.
See you at the Bottom, lol !!!
Learn to trade or you will be selling your picaso’s for food, lol
Don’t leave yet jj……it is just getting interesting.
Probably. Do you ever listen to the political stuff. To us, it is the most fun because of all the inter-relationship.
Not so much anymore Al. These days I really only focus on policy level stuff and what is already in the works. I like that you are trying to include more aspects of the commodity sector though. Good to open up the show a little to something else. On golds down days it can sometimes be dead around here.
Interesting observation, Birdman. It reminds me of something I once said (tongue in cheek), when asked when a true bottom will occur in the broad stock market. My answer was, “on the day CNBC cancels Mad Money”.
Eric,
I currently still remain bearish on both the mining stocks & physical metals, as I still believe we’ll test December’s lows again.
But that said…when they both turn for the long term towards new highs, I’ll be cheering them on just as loudly as any gold bull on here.
Its nothing personal…its just that I don’t yet feel the timing for ME to increase my holdings in both mining stocks & physical metals is right…just yet at this moment.
I may be proven correct ?…I may also be proven incorrect ?…lets wait & see.
I guess it all comes down to current speculation & personal risk versus reward for the INDIVIDUAL involved.
Ultimately I think we are all on the same side !!!…only the timing of our entry (or increasing our stake) differs in opinion at the moment.
Hope you have a great weekend,
Cheers.
Hi, Skeeta
thanks for your comments and you may be absolutely right. I can tell you that historically I tend to be a little early. An investor must know themselves and I know that I am psychologically unable to chase the mining stocks during an uptrend. Thus, I must scale in, during periods of weakness, if I am to have a position at all.
There is an interesting lesson in that, by the way, because I tend to begin scaling in once the bear market is well under way. For instance, I started to accumulate the mining stocks during the summer crashette, after they had already come down quite a bit.
But that didn’t stop some of them from finding new lows along the way.
The lesson in this is for those who are currently riding the bull market in the broad market. As typically happens (with memories on Wall Street being of the ‘short term’ variety), the average commentator today is talking about either a continuation of the rally or a shallow sell-off.
There is little attention being paid to the possibility of the next bear market. Given that the average bear market decline is on the order of 30% or more (and that when senior indexes go down 30%, many individual stocks crater 50-75% or more), the investing public is once again setting themselves up for a massacre.
And, like what we have experienced in the mining sector, the bear in the broad market should last longer (and be deeper) than participants can now imagine.
Have a great weekend!
Wow. Chris had a thread that broke a hundred (posts). First time I think.
bird………..that is because you posted 26 times………..true but joking…..
Ha Ha Ha!…..
You actually counted?
Yes it did Bird!
[…] What’s most likely? None of us has a crystal ball; but as you’ll hear in this recent segment I did on the Korelin Economics Report, there are some precedents for how the U.S. government would handle such a cash crunch. And it’s decidedly different than what the rumor mongers are calling for! Take a listen here (under 10 minutes) … Interview […]
Hey guys call a stuffed goose a stuffed goose, regardless of a bail-in or not the government is coming for CONTROL of your wealth….same goose different stuffing!