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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (113043)	11/11/2020 9:29:39 AM
From: Sun Tzu	Respond to of 116764

True free markets are so volatile that nobody would be able to stand them as they frequently lose 80+% of their value. Just look at the various markets prior to 1940. The Reminiscences of a Stock Operator is always a good read. Anyways, that is besides the point since we live in the real world and it is what it is. So here's how you should look at it: money, like water, has to find a place to go to, and there are only 3 places for it: equities, bonds, and commodities. You could argue that it can also flow into currencies - but I am lumping them with commodities and in any event all central banks are printing money, so they are all toast. So long as money is being printed, the bull run will continue. As to the valuations - all valuations are always relative. So if you have financial instrument A having a payoff of 4% and financial instrument B having a payoff of 1%, then most of the funds will go to A. It doesn't matter if A has historically paid off 6% because B has historically paid off 4%. It's about relative valuations, not absolute valuations.