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Non-Tech : Farming -- Ignore unavailable to you. Want to Upgrade?


To: Elroy Jetson who wrote (560)3/16/2008 5:49:15 PM
From: Paul Kern  Read Replies (1) | Respond to of 4448
 
investing in commodities doesn't even come close to keeping up with long-term inflation.

stockcharts.com

stockcharts.com



To: Elroy Jetson who wrote (560)3/16/2008 7:50:46 PM
From: bart13  Read Replies (1) | Respond to of 4448
 
The actual facts show your original conclusion ("people who believe that the increase in grain prices are permanent and unavoidable are simply mistaken.") to be incorrect. You made no statement about inflation.

As far as the other point, there is virtually nothing general (like "commodities" or "stocks") that significantly beats long term inflation on a consistent decade by decade or multiple decade basis. Bull markets and bubbles and manias do exist, and not participating in them makes ones returns a lot lower than they could be.

You're incorrect about oil - the actual facts show that it has resoundingly beat inflation on the very long term, and even if it corrected tomorrow by 20-30%:




To: Elroy Jetson who wrote (560)3/16/2008 9:27:03 PM
From: Tommaso  Respond to of 4448
 
>>>As with long-term oil prices,<<,

Then how come my COS.UN stock is up 700% from what I paid and pays me a 40% per year annual return on the original investment?