<<<I know many of you have no respect for history and feel that we are in a new paradigm of investing. But I also know that he or she who ignores history is doomed to repeat its tragic lessons. The XAU has almost always led the Shiny Yellow Metal into>>>>
Rarebird,
I appreciate your thoughtful post, it would have been better had you refrained from attacking Patsy but, oh well. Not everyone is as dumb as you think, as your probably not as smart as you think you are. Markets have a way of humbling the arrogant. You have gone to great lenght to detail your gains, what can you tell me about your losses, or am I being led to believe that they don't exist. I'll tell you mine if you tell me yours. <gg> I agree that the "head in the sand" approach leaves you exposed in other areas and I am quite cautious about current market conditions. Thank God for GTC stoploss orders.
Regarding market crashes of the past, I believe 1929 was brought on by rampant margin buying, where everyone and there brother were borrowing every $ they could get their hands on to throw at the
market. This bull market has been driven by declining inflation, declining interest rates, improved worker productivety, and the end of the cold war. These are fundamentals which build real value. We may be seeing those fundamentals change as the work force becomes depleted, commodities become more scarce, and just plain old "consumer spending like theres no tomorrow" goes on unabated.
1987 was exacerbated by computer program selling ( hence the curbs of today). But how long did it take for the market to recover?
While history does indeed repeat itself quite often, or as Mr Lefevre writes "all the time". He must also concede, that tomorrow is "the great unknown" hence the term "risk". My risk is that my portfolio of stocks will decline significantly and never regain their value, your risk in regard to gold is the same. I wish you no ill will. It raises my asset value not one dollar. Good evening to you and the best of luck to you in your investing. D.H. |
