SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: elmatador who wrote (39516)9/3/2008 8:17:29 PM
From: carranza21 Recommendation  Read Replies (2) of 217755
 
Perhaps not a downdraft, but certainly a slow, steady decline which does as much damage as a downdraft. More, really, because a slow, steady decline is not accompanied by much volatility which allows one to make trades that might potentially ward off trouble.

Imagine you invested USD $10k in an S&P Index ETF at the beginning of 2001, just 7 years plus eight months ago. The Index was at 1347 then. Today it closed at 1274. You'd probably tell me that this is just a few points, no big loss. Aha. Sure. But you have not calculated inflation into the value of the Index. If you had, you'd know that the Index is an absolutely miserable investment for it adds anywhere from 6% to 10% p.a. [depending on how big you think the lies about inflation are] to the return you must make to stay even. IMO, you must make a minimum of 12% to make a tiny profit and a whole lot more to prosper.

Fraudulently calculated inflation is one of the factors behind the slow steady decline I bank on. The others are exaggerated debt and completely out of control government spending. They will all inevitably add to inflation.

I have positioned my PF accordingly. I am getting hammered at present but this is a temporary aberration which the macroeconomic forces at play will correct sooner or later as they grind inexorably away.

Downdrafts? I'll take them.

But don't expect me to listen to some numb brain writing for USA Today for clues. The article in other words was incredibly inane and terribly stupid, a compilation of irrelevant impressions from a writer who is totally clueless.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News