2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

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 375.96

-1.8%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

Recommended by:

dvdw©

To: TobagoJack who wrote (185014)	3/8/2022 6:59:49 PM
From: sense	1 Recommendation Read Replies (2) of 217830

With that rant out of the way... There's also a practical element or two in market functions that the article ignored... when they'd be useful for investors to recognize... An obvious one in nickel... as the suspension of trading imposes a forced reconsideration of the value of miners... when the miners as a group have failed to enforce rational market discipline... leading to the failure of their market.. And, when there are not functional transparent markets able to facilitate trades in the commodity... the value of those businesses is altered.... That might not be a bad thing... when it is the corruption of the market itself that is forcibly "corrected" by the market ceasing to exist... allowing producers to make deals with direct dealings... demanding higher prices to assure that stability that used to result from certainty in the market function... A less obvious one (or two), perhaps... in recognizing that companies hedging their production leads to variations in their performance... some of which are variable depending on the skill of the company's effort in trading... Screwing it up bad enough to take down the market... comes in at the low end of expectations. But, barring that... the company's own performance is still held at risk of reflecting that variable... Related to that... is understanding that element exists... with multiple purposes... not all of which are about maximizing financial gain... rather than "smoothing out variations" that might otherwise disrupt the flow of operations... that are best conducted with a steady hand... and without whipsaws in funding... or job risk. A successful hedging operation... will minimize "disruption" of the business... as much or more than "disruption" of share prices... So, commitment to proper market function... enables better business management in each company... and smoother economic function of the entire economy... while breaking market function... imposes morons throwing wrenches in the gears on everyone... But, at the company level... also useful to investors to know what the company does in managing its market risks... how well they do it a critical element in valuation... but, also, a direct factor in TIMING... because, if you know how a company has hedged its future production... and know when those hedges expire... and know what the market has done to prices in the meanwhile... ? Then,. you can also predict movements in stocks based on "change" occurring in prices earned... And, when prices have changed a lot... that can make a big impact...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next