Pragmatism is derived from the Greek word Tpayua ( the first letter should be the letter pie but I don't have a Greek keyboard in front of me), meaning action, from which our words practice and practical come. The pragmatic method strives to interpret each notion by tracing its respectful concrete consequences. People whose orientation is primarily pragmatic will compromise (or in some cases give up completely) their values or principles for the sake of a good or positive result, such as money or sex. In this light, momentum investing and the present US asset bubble is basically pragmatism ( amongst other things) at work. If it works, keep on doing it. That is to say, buying equities produces great long term results so if I'm pragmatic, I will continue to buy equities on every dip. Who cares about fundamentals? That deals with speculative reasoning. What counts is results not theorizing as to what may or may not happen. On the other hand, Gold hasn't worked as a long term investment for 20 years, so if I'm pragmatic, I will stay away from it like the plague. Sounds Superficial? It is.
Now you partly know why it is so hard to break this bubble and to get the POG to hold above $300 an ounce. To break the back of the typical pragmatic American Investor, the NDX will have to close below its most recent lows this past Tuesday.
As for Giulanni, I thought he might have a shot against Hillary in NY because he is a moderate Republican who is liberal on social issues. But he is no friend of Gold IMO. He is all for the exuberance on Wall Street, along with our Governor, because of the added revenues. |
