Ten days ago we received the first (very prompt, many thanks) market guidance from our proprietary indicator thus:
"This is precisely the pattern I’ve been telling you for months to expect. Financial assets ascending. Real assets descending. Money surging from bonds to stocks. Commodities squished. And real estate taking it on the chin."
Er, no, your bond funds may have.So, your bond fund lost money this week.
So did your house in Vancouver. And your silver and gold. In contrast, the S&P 500 (the only US market to watch) rose 4.6% and is now at the highest level since December of 2007. The Dow added 3.8%. Even the Russell 2000, an index of small companies, surged 5.7%, to an all-time crest.
The point of posting the chart above is only to prove the futility of commenting on small moves, daily, unless you are the sort of idiot that is banking non-returnable profit from it.
If you are instead the kind of fool who has to wait until the end of the year to see if the market took your potential wins back or not, then a clear understanding of long term fundamentals is what you require.
One day soon there will be a post called "The idiot's guide to wealth management" here, until then if readers just assume that in general idiots are only trading at maximum 20% of their total wealth, the rest is 50/50 gold and silver, because at an average of 17-20% per annum gains over the last decade and more, plus counterparty-risk free to boot, you'd have to be a real idiot to think you're going to outperform that on an ongoing basis until the fundamentals behind their rise, are fixed.
If you are instead the kind of fool who has to wait until the end of the year to see if the market took your potential wins back or not, then a clear understanding of long term fundamentals is what you require.
One day soon there will be a post called "The idiot's guide to wealth management" here, until then if readers just assume that in general idiots are only trading at maximum 20% of their total wealth, the rest is 50/50 gold and silver, because at an average of 17-20% per annum gains over the last decade and more, plus counterparty-risk free to boot, you'd have to be a real idiot to think you're going to outperform that on an ongoing basis until the fundamentals behind their rise, are fixed.
And you can either take the word of people who saw it all coming 10 years ago, or you can take the word of people who have tried to keep you out of Gold & Silver over the years as to the reasons why..
As always, the choice is yours.
And can anybody who frequents Garth's comments please try and get some EURUSD & USDCAD calls.
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