Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
We all know what's going down in the EuroZone. Lots of folks running scared, trying to find a "safe harbor". So OK, maybe the dollar looks pretty good right now compared to the Euro. And that affects gold exactly how? The "super-safe harbor" folks (gold-holders) all of a sudden think that they would rather have dollars than gold? Say what?
Everything is being liquidated, and I'm guessing there's margin calls going on. Dollar ramping because the Euro is tanking to the lowest level in months is not good for gold (or commodities in general.) Bernanke's doctrine may have been "Deflation: Making Sure "It" Doesn't Happen Here", but "it" looks like it's happening, well, here.
Gold is a thin market, and if people have to sell, it looks like this. Gold is a VERY volatile holding because of the thin nature of the market. Up/down $50-100 is not unheard of. I would classify gold as a few things, but "safe harbor" (in the traditional sense, at least) is not one of them.
Depending on your view, it's either a buying opportunity as people have to puke it up on the market or a chance to think you're right about this silly gold stuff. Which view depends, of course, on which side you're on. It is already higher than earlier levels this morning and what's interesting is that the miners (GLDX, GDX) are doing well today - GDX up nearly 4%.
Thanks for the insight. Appreciate it. I think that this snowball (sorry, David) is rolling, and Bernanke had better get out of the way like everyone else.
Scott.....hoping this doesn't cause you to choke with a mouth full of Diet Coke; but we moved some more money today away from HY/HI bond funds and into PTTRX, FINPX and ACITX. Our risk is now more so with bonds, versus equities or related; and our house will rely on the first area of choice. Hi OJ..................
Hi Kenster1_GlobalValue, There are a few areas of very low relative strength; but I don't think the cutting is yet finished. Although I am sure there will be many whipsaws coming from the traders and machines.............. Emerging markets is one area I looked at again....just to watch.
Hi Catch- moved some yesterday at American Century from HY to TIPS. Finally got the new Schwab account opened yesterday also. Now watching for buying opportunity for some new/cool stuff... MAPIX, GASFX, and maybe some PAUDX and MFLDX. BTW, if the previous MFO speculation re MFLDX shorting PM is correct, looks like they made a nice move at the right time.
Yeah, Catch- I look at the S&P and wonder how much of that daily opening drop is the machines dumping, only to repurchase later in the day at a lower level. A penny here, a penny there... it all adds up.
3:38... Looks like a ripsnorter of a finish, considering how things were looking this morning. Machines racing to the finish line!! Standby...
3:48... Machines in front by half a length!!! We're down to the wire...
4:00... And it's MACHINES by a hair!!! A thrilling finish at +0.17%!!!
Reply to @catch22: You mean on my 5th DC of the day? No, I think - as I've said before - different viewpoints at different ages and I think both are doing what they view as best. I would never recommend what I'm doing to someone in retirement age - I think those nearing retirement age HAVE to be conservative. My fear is that some of these investments can get too crowded with millions of people in the same situation trying to do the same thing, but who knows.
Thanks, youngster, but not to worry... no serious money going in here. Just a bit around the edges to see what happens. Currently 50% cash, 32% bonds, only 18% equity. Hell, the cash will lose more just sitting there than the new/cool stuff will. Thanks for your concern!
Because, OJ, gold goes up and dollar goes down when there is hope for QE / large scale stimulus and asset purchases. Lately, due to political shifts in many countries and unsustainable debt levels, the hopes for such easing have all but died. We might hear more of this though when the consequences of the Grexit fallout will sink in with the core European countries. We'll see.
Hi there FA- very nice to hear from you again, and thanks for the additional insight. I need all the help that I can get- most of the time I can't see beyond the end of my nose.
Hope all is well with you and yours- you take care now! OJ
Hi OJ, I will discover more from a neighbor this week about whether her HP work is going to India; which has been and will likely be some of the 27,000. However, I know her work will not be, as she is an "in place" IT/software engineer and is now commuting between MI and a southern state for a major project. A running joke, although sometimes not; and what used to get a lot of chatter among we "wee folks" out on the frontlines of customer service; is when we would receive the old fashioned paper newsletter in the mail and later the electronic version as technology moved along, from the company. Several of us would count how many times the "mantra" of "improve shareholder value" was found as various operations or programs were announced with the resultant changes that would have to be made. Sadly, as with the majority of large U.S. companies, and especially those serving both U.S. and global markets; the bean counters were only looking at a box entry in the spreadsheet and would do a "OMG", run to their manager and provide the fix of a lifetime for the company. 'Course many of these "fixes" blew up, as no one bothered to ask what the real impact would be either 10 or 2,500 miles away from the home office. I don't find much change with this today; and the major confusion that found its way into many companies in the early 1990's still remains. It is a wonder some of these companies make any profit at all.
It is one thing to read or study about another's work; and yet another item to actually do the work, eh? Ah, hell; with a MBA degree, a good smile and dressed to the top, one should expect an all-knowing and seeing person to be able to walk right into the front door and do the fix, yes? Doesn't matter if they know what the company really does for a profit.
Onward and upward with shareholder value to find what future damage needs to be controlled. Wonder if the wording is among the 1,000's of words for Facebook's IPO? Hey, thanks for allowing the rant. Regards, Catch
Comments
Gold is a thin market, and if people have to sell, it looks like this. Gold is a VERY volatile holding because of the thin nature of the market. Up/down $50-100 is not unheard of. I would classify gold as a few things, but "safe harbor" (in the traditional sense, at least) is not one of them.
Depending on your view, it's either a buying opportunity as people have to puke it up on the market or a chance to think you're right about this silly gold stuff. Which view depends, of course, on which side you're on. It is already higher than earlier levels this morning and what's interesting is that the miners (GLDX, GDX) are doing well today - GDX up nearly 4%.
ACITX. Our risk is now more so with bonds, versus equities or related; and our house will rely on the first area of choice.
Hi OJ..................
There are a few areas of very low relative strength; but I don't think the cutting is yet finished. Although I am sure there will be many whipsaws coming from the traders and machines..............
Emerging markets is one area I looked at again....just to watch.
3:38... Looks like a ripsnorter of a finish, considering how things were looking this morning. Machines racing to the finish line!! Standby...
3:48... Machines in front by half a length!!! We're down to the wire...
4:00... And it's MACHINES by a hair!!! A thrilling finish at +0.17%!!!
Hope all is well with you and yours- you take care now! OJ
I will discover more from a neighbor this week about whether her HP work is going to India; which has been and will likely be some of the 27,000. However, I know her work will not be, as she is an "in place" IT/software engineer and is now commuting between MI and a southern state for a major project.
A running joke, although sometimes not; and what used to get a lot of chatter among we "wee folks" out on the frontlines of customer service; is when we would receive the old fashioned paper newsletter in the mail and later the electronic version as technology moved along, from the company. Several of us would count how many times the "mantra" of "improve shareholder value" was found as various operations or programs were announced with the resultant changes that would have to be made. Sadly, as with the majority of large U.S. companies, and especially those serving both U.S. and global markets; the bean counters were only looking at a box entry in the spreadsheet and would do a "OMG", run to their manager and provide the fix of a lifetime for the company. 'Course many of these "fixes" blew up, as no one bothered to ask what the real impact would be either 10 or 2,500 miles away from the home office. I don't find much change with this today; and the major confusion that found its way into many companies in the early 1990's still remains. It is a wonder some of these companies make any profit at all.
It is one thing to read or study about another's work; and yet another item to actually do the work, eh? Ah, hell; with a MBA degree, a good smile and dressed to the top, one should expect an all-knowing and seeing person to be able to walk right into the front door and do the fix, yes? Doesn't matter if they know what the company really does for a profit.
Onward and upward with shareholder value to find what future damage needs to be controlled. Wonder if the wording is among the 1,000's of words for Facebook's IPO?
Hey, thanks for allowing the rant.
Regards,
Catch
Huh.