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  • Aug 12th, 2011 4:20 pm
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Aug 3, 2011
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AJAX

markets today

One year ago, investors shook about news of the Greek crisis and markets turned inward.....for awhile. The current situation in global markets is also not an economic event that will turn employment, GDP, capacity,etc or markets inward for long. Last year, after being depressed during the summer, many global markets continued to grow and gave investors 10% for the calander year.

This does appear to be a good buying event for those who can stomach the volatility.
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Feb 13, 2009
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roweandmalidotcom wrote: One year ago, investors shook about news of the Greek crisis and markets turned inward.....for awhile. The current situation in global markets is also not an economic event that will turn employment, GDP, capacity,etc or markets inward for long. Last year, after being depressed during the summer, many global markets continued to grow and gave investors 10% for the calander year.

This does appear to be a good buying event for those who can stomach the volatility.


I made one purchase today and plan to make a few more purchases Monday & Tuesday if they keep going down. I've been waiting for this for a LONG time now....! I only wish it were double the drop it has done in the past few days!
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I loaded up an August 10, 2010 statement, and basically all my stocks today, are the same as they were a year ago. My account equity is a bit greater because I've made contributions and have collected dividends, but to have a years worth of growth knocked off is pretty painful.

But what does it really mean? The spring of eventual greater stock market growth his coiled up even tighter, waiting to explode even more viciously. It is very easy to find firms trading at 10X earnings or less, and, especially in the gold sector, there is amazing earnings momentum.
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roweandmalidotcom wrote: One year ago, investors shook about news of the Greek crisis and markets turned inward.....for awhile. The current situation in global markets is also not an economic event that will turn employment, GDP, capacity,etc or markets inward for long. Last year, after being depressed during the summer, many global markets continued to grow and gave investors 10% for the calander year.

This does appear to be a good buying event for those who can stomach the volatility.

interesting.
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US credit downgrade.... I am capitulating Monday. I can't take the bleeding any longer. The market is going to take a beating.
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Feb 17, 2007
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Elektronauts wrote: US credit downgrade.... I am capitulating Monday. I can't take the bleeding any longer. The market is going to take a beating.

Damn, i was half wrong and half right. There was a debt deal, but rating still gets cut.
I guess i will have to donate a few thousands to charity for being wrong and sticking my neck out for trying to predict short term things.

But seriously, serve those people right for pumping up treaury prices and decreasing those yields to ultra low. Stupid pension fund managers.
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Jul 1, 2007
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Elektronauts wrote: US credit downgrade.... I am capitulating Monday. I can't take the bleeding any longer. The market is going to take a beating.

How does this affect stocks? In the past few days money has flowed from stocks and other risky assets (even from gold!) into U.S. treasuries. Now that U.S. treasuries are slightly less desireable, shouldn't the money flow in the opposite direction? The world needs to come to its senses and realize that the "safe" place for money is in hard assets, like gold (ideally, just too damn expensive now), commodities, stocks, etc. Regardless of currency devaluation these hard assets will always be in demand or will make things that are in demand and will maintain some sort of value.

Just think about what you're putting your money into if you're selling stocks: You're trading stakes in companies, which at the very least own property/plant/equipment and ideally make something which is in demand and can be sold as easily in tomorrow's devalued currency as today, for paper which has no intrinsic value other than a nominal value assigned to it by central banks, which governments are free to print in limitless supply without anything backing it up.
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Aug 25, 2010
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Yup, this downgrade won't affect stocks. Moody's maintained the AAA rating, now S&P downgrades and Fitch will decide by the end of the month. It was highly likely that at least one of the above would downgrade so this "news" has already been accounted for in the markets and also in the US dollar. So while we might see pressure on the USD, a sell-off is highly unlikely. Plus, what's the alternative (in terms of depth and liquidity)? Swiss francs? ;)
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JustBob wrote: Yup, this downgrade won't affect stocks. Moody's maintained the AAA rating, now S&P downgrades and Fitch will decide by the end of the month. It was highly likely that at least one of the above would downgrade so this "news" has already been accounted for in the markets and also in the US dollar. So while we might see pressure on the USD, a sell-off is highly unlikely. Plus, what's the alternative (in terms of depth and liquidity)? Swiss francs? ;)

so i guess you should be buying on monday since this downgrade won't affect stocks.
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Thalo wrote: How does this affect stocks? In the past few days money has flowed from stocks and other risky assets (even from gold!) into U.S. treasuries. Now that U.S. treasuries are slightly less desireable, shouldn't the money flow in the opposite direction? The world needs to come to its senses and realize that the "safe" place for money is in hard assets, like gold (ideally, just too damn expensive now), commodities, stocks, etc. Regardless of currency devaluation these hard assets will always be in demand or will make things that are in demand and will maintain some sort of value.

Just think about what you're putting your money into if you're selling stocks: You're trading stakes in companies, which at the very least own property/plant/equipment and ideally make something which is in demand and can be sold as easily in tomorrow's devalued currency as today, for paper which has no intrinsic value other than a nominal value assigned to it by central banks, which governments are free to print in limitless supply without anything backing it up.

lower credit rating = higher borrowing cost, American's will be paying more to service the same amount of debt. Less money, less spending, lower stocks. Some money will flow out of treasuries yes, but not into stocks, it will go into Gold. Bernake will have to do QE3 to try and keep interest rates low and spur spending, in the process kill the USD again benefiting gold. I unloaded all my Gold a three months back (can't remember why) right around peak, was looking to get back in but never did... and very difficult to get back in now.
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Aug 25, 2010
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xlfe wrote: so i guess you should be buying on monday since this downgrade won't affect stocks.
Yes because obviously stocks should only be bought or sold based on credit ratings... Or I could just have written "silly statement". :)
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Dec 30, 2004
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Bought gold today... I think ppl will turn to that next week
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Elektronauts wrote: lower credit rating = higher borrowing cost, American's will be paying more to service the same amount of debt. Less money, less spending, lower stocks. Some money will flow out of treasuries yes, but not into stocks, it will go into Gold. Bernake will have to do QE3 to try and keep interest rates low and spur spending, in the process kill the USD again benefiting gold. I unloaded all my Gold a three months back (can't remember why) right around peak, was looking to get back in but never did... and very difficult to get back in now.

The gold stocks, unbelievably, are still down quite a bit compared to three months ago, and are still at 2007/2008 levels where gold was half of current levels.

You might want to consider the stocks instead of the physical metal. To make the best out of what you perceive is a bad situation.
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Mark77 wrote: The gold stocks, unbelievably, are still down quite a bit compared to three months ago, and are still at 2007/2008 levels where gold was half of current levels.

You might want to consider the stocks instead of the physical metal. To make the best out of what you perceive is a bad situation.

But... but.. they're down 20% off their highs, even though gold is near an all-time high! If I purchase it now, I will lose money. Better to wait for it to recover.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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Thalo wrote: But... but.. they're down 20% off their highs, even though gold is near an all-time high! If I purchase it now, I will lose money. Better to wait for it to recover.

Lol, no kidding, and don't buy the cheapest, most highly capitalized one (on a P/E basis) -- Barrick, either. Some junior will do so much better cuz "big gold" are going to open the wallets and pay top dollar for some uneconomic hole in the ground that will take 10 years to bring into production! Besides, everyone knows Barrick is just an arm of the Federal Reserve in manipulating the gold price.

Oh yeah and Barrick management are morons for using their rich cashflows to buy a cheap copper company using long-term debt that will inflate away because of this USD$ downgrade.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...

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