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.

Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: rsie who wrote (5599)	9/26/2010 1:36:05 AM
From: marc ultra	2 Recommendations Respond to of 10065

<so i am curious, i would really like to see what people on this board think of investing in GLD at this point? If I had some excess cash and was interested I'd be looking to short Gold, not go long. The whole thing has gotten completely ridiculous to me. Things may be horrible in the economy and bad events may happen so buy gold I guess as a hedge against what, deflation? Governments are spending too much money so buy gold as a hedge against horrible inflation. Make up your friggen mind, is it inflation or deflation? Gold was already way up as it's in part being used as an alternate currency and now it's pushed somewhat higher as we entered a seasonably very strong part of the year for gold. Things can always happen to push it higher but I suspect without an extraneous event it could plunge as we move out of his seasonality. It looks a lot like when oil went up to $145 for no good reason. I think the stock market continues to look like the place to be now even after the recent pop. We have no inflation, no deflation though perhaps a little disinflation, we have bonds and gold in a bubble-like state so to me stocks are compelling. I think David Tepper, he impressive hedge fund manager whose appearance on CNBC Sqawk Box Friday helped rally the market got it right. If the economy does OK stocks will go up. If the economy doesn't do OK the Fed will do some Quantitative easing and stocks will go up. Maybe gold will go up also with QE but that's not where I'd want to be. For stocks it's heads you win and tales you win. Here's an article about this remarks and I think there are some brief videos floating around also: David Tepper is bullish in CNBC interview Friday, 24 September 2010 23:39 billionaire predicts strong stock markets BY BOB HOLT NEWJERSEYNEWSROOM.COM David Tepper, checking in at number 62 on the Forbes 400 money list, is the founder of Appaloosa Management, which is a hedge fund investment firm based in Chatham, N.J., just west of New York City. It oversees $12.4 billion in client assets. In a CNBC interview on Friday, Tepper, 53, said government intervention in the financial markets virtually guarantees that most investment choices will go up. Businessinsider.com reports that the billionaire from New Jersey said, "I am the animal at the head of the pack... I either get eaten, or I get the good grass." Right now he's loving the Fed put — basically the Fed's promise to intervene if the economy is weak — so he's pretty bullish on stocks. Even though market reaction has been tepid, Tepper said this week's Federal Reserve Open Market Committee Statement reflected that the government will do whatever it needs to keep the capital markets from sinking below a designated level. Dailyfinance.com reports that in 2009, Tepper jumped on badly beaten up financial stocks like Bank of America (BAC) and Citigroup (C) as fears of a nationalization that could wipe out equity holders pushed shares to rock bottom levels. The bet paid off enormously. According to CNBC, Tepper's fund made $7.5 billion last year on a return of 132 percent, made mostly by betting on a resurgence in financials. He said the choice was easy — he simply followed the government's telegraphed moves that it was going to buy bank equity to make sure the industry did not completely collapse. Tepper initially became interested in the stock market as a young boy watching his father trade stocks in his hometown of Pittsburgh. Today, as president and founder of Appaloosa Management, Tepper has earned an international reputation for producing some of the highest returns amongst fund managers on Wall Street. According to gurufocus.com, Tepper earned a master of science in industrial administration from Carnegie Mellon in 1982. He donated a record $55 million to the Graduate School of Industrial Administration. It is now called the Tepper School of Business. The gift is the largest donation to Carnegie Mellon University in its 104-year history. Tepper, who is notoriously shy when it comes to granting interviews, appeared to move the market as he spoke on CNBC Friday morning, with the Dow gaining nearly 200 points on the day. Last Updated ( Saturday, 25 September 2010 09:40 )