Silicon Investor (SI) -- The First Internet Community

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 : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (39933)	8/31/2005 7:23:15 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 306849

Angry Bear is very different from Prudent Bear. AB is three PhD economists that write some very reasoned analysis - and they aren't always bearish. PB goal seems to be to scare people.

To: Lizzie Tudor who wrote (39933)	9/1/2005 5:36:33 AM
From: shades	Respond to of 306849

321gold.com Many of us while away significant amounts of our working day thinking of ways to get rich quick so that we can abandon our hate-filled little families and take up with someone half our age but twice as nice. One of the ways to get wealthy that you always hear about is investing in the stock market. But I have some bad news in that regard. If you think that your genius will produce fabulous gains in the stock market that will put you miles and miles ahead of any posse or bounty hunter, then Adam Hamilton, of the Zeal Intelligence newsletter, has some real news for you. "The S&P 500 went from 108 in the late 1960s to 107 in the early 1980s, for a small 1% loss. That is bad enough, to not earn any money over more than a decade, but if you look at the same slice of time in the inflation-adjusted data, investors actually lost nearly two-thirds of their purchasing power over this same period!" See what I mean about inflation? You got killed by inflation! And the damned stock market didn't help you out one little bit! Hahahaha! I'll be that little financial planner of yours never told you about THAT! Hahahaha! And even worse and more currently, the same thing can be said for the last five years, too! So now matter what the clueless touts on TV say, neither stocks, nor bonds, nor houses will preserve your purchasing power over the long term nowadays. When you have a fiat currency, sooner or later you get deficit spending, and that means that inflation is guaranteed, and it will devour the purchasing power of every dollar you own. But is there EVER a time when stocks preserved their purchasing power? If you had asked me, I would shrugged and said "Hell no, probably." But you did not ask me. All eyes are on Mr. Hamilton. Apparently he is ready for this question, because he immediately says, "Over the past half century from the absolute best-case moments in time to buy and sell for the long term, fully 7/8th of the gains investors could have reaped are illusory. These are wiped out by rising inflation decreasing purchasing power." In case you, like me, missed the significance of that, they summed up by reiterating, "Thus inflation wiped out half of the best possible annual gains in the last half century or nearly 7/8th of the final compounded return." ....I know that with inflation, you can invest enough money to buy a Cadillac, and finally, after years and years of successful investing, you sell. After taxes and after inflation has eaten away at the purchasing value of your money, you get back enough to buy a Cadillac and maybe enough gasoline to get you home! Hahahaha! Invest a car and get a car! Real sharp investing there, dude! I can see that your retirement is well funded and in real good hands! Hahahaha! - The time has arrived for anyone wanting a fixed return to plow their money into 6-month Certificates of Deposit, which are paying about 4.02%, according to the Wall Street Journal, which is almost identical to the yield on longer government 5 and 10-year debt! Hahahaha! Only a real idiot, and I mean a REAL idiot, is buying American debt at these low yields! Roaring, crushing inflation is coming, and the Fed is already on record as saying that they will be raising rates for quite awhile yet. And so any moron so dull as to buy American debt is going to lose money as yields rise. Hahahaha! These are the guys who are running your pension fund? Hahahaha! Sucker!