Dan Oliver discusses the markets.
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And therein is the difference between a static situation and a dynamic situation!
Dan does a great interview by the way. He is great to listen to Al. Maybe its his style. Looking forward to the weekend show.
I really enjoyed this interview with Dan Oliver, and enjoyed when you have brought him on in the past. My head was nodding to many of the points he made, as I’ve been talking to other people about the exact same things. Keep getting Dan on the show as he is S-H-A-R-P.
I second that Shad.
good comments dan. I just watched maryland states attorney announce homicide charges against officers. in Baltimore . I feel this is hasfty , political, and will result in a failed case in the long run. No intent is apparent and the charge should have been excessive force [ a charge which would stick]. The president should ask for a temporary ban on late night reporting on the protests as the cameras are obviously causing some of the violence and looting . perhaps a 30 day ban on nightime reporting to make sure we dont have riots and arson all over the big cities. love to all S
Very interesting points from Dan. It’s good to hear from him as usual.
I love the Dow:Gold ratio chart like this one:
http://1000gold.blogspot.co.uk/2013/10/could-dowgold-ratio-go-close-to-zero.html
The thing I love about this chart it is shows the steady march up in the stock market (not necessarily the Dow!) during the 1800s A couple of panics but prices rose within a stable trend channel. Once 1925 was reached, things started to go awry.
Now that upward slope in the 1800s represents the ratio of the value of productive assets to the value of non-productive (hoarded) assets or the yellow rock, gold.
That upward slope represents PROGRESS. This is just what Dan says; the markets should go up in stable fashion. Although there are cycles and bubbles to an extent, the trajectory is clear over the longer term.
Since 1925, the Dow:Gold ratio has gone into extreme wide swings with no stable uptrend. Despite all the new technologies this chart represents 90 years of lack of progress. It represents the wild swings in speculation on financial and other assets – it represents increasing price uncertainty and instability across the economy, through which a certain number of financial engeineers can extract enormous profits and drain away the energy of the economy.
The swings in the Dow:Gold ratio are a bit like a magnetic hysteresis loop – as the polarity swings, energy is absorbed, essentially wasted.
Well that was pretty interesting. I enjoyed the part where Dan was talking about the market cycle and how it rises and falls. He could have substituted the words “gold” in place of market and made perfect sense of what has been happening here because what he described is just what has taken place/. But then later in the interview he mentioned how gold was the stabilizing influence for the last 3000 years and I guess I will disagree. Gold is not stable at all. Just ask the gold bugs and they will all tell you it is badly under priced. Or ask those who sold after it went parabolic and they will assure you they made a killing when it was a few deviations off the norm. I know that some want to insist it is all dollar related but we know that is not true at all. what is a fact is that precious metals suffer boom / bust cycles just like most other commodities and they are NOT therefore stable relative to price.