Stock Market

[columbia]

@EPP

Do you actively trade in gold shares or just let it ride and keep investing for the long haul?
I'm curious, given the volatility of that market in the last year or so.

[King Sid the Great 87]

Wonder how the Fed will stimulate the stagnant housing economy 10 years from now when nobody wants to sell their house and give up the choice rate they locked in while the Fed was "stimulating" the economy?

TIPS TIPS TIPS.

[Troy Loney]

Wonder how the Fed will stimulate the stagnant housing economy 10 years from now when nobody wants to sell their house and give up the choice rate they locked in while the Fed was "stimulating" the economy?

TIPS TIPS TIPS.

Not sure that's a feasable complaint. If there's a housing shortage, the price of homes would increase, people's wealth would rise and so would their spending...ie home equity loans etc. Of course, that was one of the problems that would lead to another housing bubble.

[Fire0nice228]

I want to kick my own ass. CU up another 5%, over $1.50 a share

[Pitt87]

Wonder how the Fed will stimulate the stagnant housing economy 10 years from now when nobody wants to sell their house and give up the choice rate they locked in while the Fed was "stimulating" the economy?

TIPS TIPS TIPS.

Not sure that's a feasable complaint. If there's a housing shortage, the price of homes would increase, people's wealth would rise and so would their spending...ie home equity loans etc. Of course, that was one of the problems that would lead to another housing bubble.

Thats right; the Fed should stop trying to solve the problem by throwing money at it. They artificially raised the price of houses by lowering the cost to obtain one, then the Federal Government's support of housing subsidies artificially inflated prices a second time. Whats fascinating is that few have drawn the conclusion that the Federal Government had a vested stake in the creation of these securities and profited on them, which they did... just ask Fannie and Freddie, who were the biggest packaging body of them all. The latest plan, to throw another $40 billion monthly into the banks that were making bets using your house as collateral, is just another bailout at the expense of taxpayers. First time ever that the Fed has agreed to purchase securities that are literally worthless.

[ExPatriatePen]

@EPP

Do you actively trade in gold shares or just let it ride and keep investing for the long haul?
I'm curious, given the volatility of that market in the last year or so.

I view gold as a "core holding".

I don't sell "core holdings"

Maybe in my 60's or 70's.

[columbia]

I definitely wouldn't investment in diamonds....

Russian Crater Diamonds Worth $1 Quadrillion
http://www.isciencetimes.com/articles/3 ... illion.htm

[KennyTheKangaroo]

I definitely wouldn't investment in diamonds....

Russian Crater Diamonds Worth $1 Quadrillion
http://www.isciencetimes.com/articles/3 ... illion.htm

you can buy it if you had a few of these :

[columbia]

The Grim Quarterly Numbers Behind Today’s Sliding Stock Market
http://blogs.wsj.com/corporate-intellig ... 0/23/grim/

[columbia]

I have 0% of my investments in bonds these days.
Can't tell whether I'm being very smart or very foolish with that strategy.

[ExPatriatePen]

I have 0% of my investments in bonds these days.
Can't tell whether I'm being very smart or very foolish with that strategy.

VERY VERY VERY SMART.

Never try to catch a market at the very top, or at the very bottom. But we've seen the market bottom in long bonds... IMHO anyway.

[columbia]

What do you think a reasonable percentage would be for precious metals?

[Hockeynut!]

Just curious how many investors here have put most of their money into gold or silver rather than stocks/bonds/etc.

[KennyTheKangaroo]

kenny the kangaroo would imagine that most investment professionals would suggest no more than 20% of an individual's portfolio to consist of precious metals. dunno if this is a fact though.

[KennyTheKangaroo]

I have 0% of my investments in bonds these days.
Can't tell whether I'm being very smart or very foolish with that strategy.

VERY VERY VERY SMART.

Never try to catch a market at the very top, or at the very bottom. But we've seen the market bottom in long bonds... IMHO anyway.

when the bond bubble pops, its going to be rough.

[columbia]

I was thinking along those lines, KtK.

columbia would like to know if Mr. EPP has a more bullish outlook on said investments.

[KennyTheKangaroo]

btw, on page 26 or so, kenny the kangaroo speculated that knight capital group might be a good investment. since then it went from ~2.70 to 3.50. kenny the kangaroo was too chicken to make that bet though and missed out on a 20% gain

[ExPatriatePen]

I was thinking along those lines, KtK.

columbia would like to know if Mr. EPP has a more bullish outlook on said investments.

On precious metals? Oh yeah. Actually I'm bullish on all the the assets that typically appreciate in an inflationary economy. Real Estate, Commodities, Art, metals...

But the actual allocation depends on your individual circumstances.

If I were in Columbias situation, I'd probably go for 20% Precious Metals. (I don't think it's wise for anyone to be in that asset class for much more than 20% of their overall portfolio). You also could get into REIT's, etc... Just stay out of the Bond market (Unless you find a way to go short fixed income)

[columbia]

I'm on 30 year plan (hopefully less if various things go well). I'll be rolling over a nice chunk of cash from a defined benefits plan and will target 20% for precious metals....That was pretty much the upper limit of my comfort level.

thanks - as usual - for the wisdom.

Maybe split the rest between an aggressive growth fund (which I now have and it does well) and a S&P 500 index fund.

I'm just making this up as I go, to be honest.

[Gaucho]

Why only 20%, if I may ask?

[ExPatriatePen]

Why only 20%, if I may ask?

Diversity

[columbia]

Why only 20%, if I may ask?

Diversity

I knew EPP was for affirmative action.

[Gaucho]

Diversity is good, but what if I'm just looking for something that I don't have to worry about or look after? Would it be foolish to just buy gold and be done with it?

[ExPatriatePen]

Diversity is good, but what if I'm just looking for something that I don't have to worry about or look after? Would it be foolish to just buy gold and be done with it?

There's only one investment I think is safe enough to "buy and hold" and never worry about checking its performance.

Spoiler:

Bershire Hathaway

Nothing else, and I really mean that. LOok at a chart of Gold since say 1977. Tell me you'd be OK with not watching something that's fluctuated like that...

[mac5155]

Market looked pretty good today, what gives (gave)