Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

start running
https://www.wsj.com/articles/bitcoi...rounces-stocks-bonds-gold-and-oil-11560765681

CNBC published something on this too. Fox news will likely pick it up soon if they haven't already. By Monday - mark my words - by Monday (probably today) it will break 10k and will make prime-time news cycles and people will get all crazy and want to jump in again. A good ol' pump and dump (its funny how a couple news cycles can literally result in a pump-n-dump scheme... thank you Fox News). My delusional happiness over crypto investing is not why I joined this forum. I'm here to talk about what I don't know, which is "real" investing. I need to diversify. I'll never leave crypto, because I do believe this is how we will end up with a single world currency that is not controlled or effected by a singular government, but its nothing more than speculation until that happens.

Thus far, Ive learned that I should watch geopolitical altercations in the middle east if I want to invest in oil, never buy gold, always invest in bullets (and presumably guns to shoot them), and pick up organic farming as a hobby so I can sustain myself in the event of a zombie apocalypse. What else? This traditional investing is fun.

 

That's how I did NIO. Got out at the top after hearing it was getting pumped because of a 60 minutes interview

 

Might wanna at least get a six pack of potted meat and some crackers to hold you over a few days. So you have time to scout out your prepper.

 

I scout them on the prepper TV shows, they give up all the details.

 

Boyk1182, I am no expert on the market or precious metals, but here's a bit of what I think...

I see gold as a place to park cash - a savings vehicle that is NOT cash - and not as an investment vehicle, that is what stocks/stock market is for.

I love the stock market and the returns it provides, but as I've gotten older(52 years old), I've become much more suspicious, wary, nervous and concerned about the whole damn market. The Fed lowers/manipulates rates(along with other ways) to force money into the market when it otherwise may not have gone into the market.
Everything is great in investment accounts/401k/ira's until it isn't... BOOM! The Big Flush! Say 2009 or 2000 or 1987, etc... markets down 25%/30%/40%.
Devastating for many folks, but Wall street continues to make plenty of $ while investors take it on the chin(wallet) during these flushes.

I see that the market has become more about financial engineering, stock buybacks, impairment charges, loopholes... you know- a bunch of accounting terms and wizardry that either exaggerates the good or obscures the bad instead of a market based on quality products/services and good old fashioned earnings.

I also lean towards T Fades way of thinking regarding our government/legislatures, in that all the QE programs, debt monetization is nothing but diluting the value(inflation) of these dollars that we hold dear. I would say that although big Government likes to tell us that inflation is low, that's bullshit and they're just constantly repeating it and the more the sheep hear it, the easier it is to believe.
Sure, the costs of some goods have fallen or remained stable, but I'm convinced that the inflation rate has been and is higher while the big boys change the way it's measured to mask the under reporting, all the while repeating that inflation is low.
All the "Too big to fail", QE programs and debt monetization are nothing but Billions - no- Trillions! of new money diluting the value of current money. Inflation!

So the stock market and housing markets crashed in 09... since then both have been rocketing higher and have made up all that lost ground and more.
That's where most of the inflation is hidden - in the massive gains your home has experienced since 09, or the super strong gains in your 401k/ira.
Of course prices for products and services have risen, but most of the inflation we experience now is hidden in "good" things like your home or retirement account appreciating.

Sorry for being longwinded, but these are a few of the reasons I have bought some gold.
Gold tends to match the dilution rate the gov throws at us... it preserves your purchasing power. About 100 years ago or so, if a person worked their job for a week, they would earn $20.00 which you could choose to receive as a $20 bill or $20 gold coin.
That $20 bill still buys you $20 worth of stuff today.
That $20 gold coin buys you $1400 worth of stuff today.

I like hard tangible assets - metals, property, guns, cars etc... stuff that I hold and am in control of.
I have a bit of money in the market, certainly not all of it... diversification is important!

Also, gold is shiny!

 

Excellent post! I do agree, someone famous said that the stock market is a mechanism to transfer money from the hands of the inpatient to those of the patient (something like that). I think that’s exactly what happens in times like 1987, 2000, 2009, etc. I truly believe that if you can leave your money alone during those times, you’ll always end up ok. That’s obviously easier said than done, and I’ll be tested soon I’m sure. Last year I sat back during the 20% correction, I actually dumped all of my savings in as we went down. It worked ok, and I built my savings back up as the market went back up. I guess I’ll see if I can do the same in the next 40% correction that’s inevitable.

 

What about high interest savings accounts? I use Marcus by Glodman Sachs, which has an apy of 2.25%. Its not a CD, its literally a savings account. Thats where my wife and I park our cash.

 

That's what I'm doing, but with American Express Savings plus a cd ladder through American express. Figure it's close enough to bonds/gold but its insured and never dips. Not a bad way to park cash imo.

 

This guy got it down pretty well! 1. It still has a lot of intrinsic value and scarcity if world turns and it doesn't catch on as the proper currency. 2. It isn't exactly a 'make money on it' investment like you're seeing it. Basically it's 'real cash' in a way. Whereas the U.S. dollar (a fiat currency -- term i hope everyone here understands) is valued on endless amounts of stuff.. but only because people allow it to be. Once most of everyone catches on and sees the dollar for what it is, it won't matter how much you have. Things like ammo, food, metals, skills and ability to create wealth aren't gonna magically change value for made up reasons... etc.. I could go on all day but it's kinda one of those things where once you start to get it it just clicks and the dot's will connect on their own. Also, it's shiny and some of us have some, some don't, sooooo

 

Imo the only thing holding crypto currency and gold back is that their value is still tied to the us dollar and for some reason people give a shit about that amount. The minute they stop valuing bitcoin and gold by it's value in dollars, and instead value it by what it's worth on it's own, dollar ain't shit no mo

 

I look at the dollar as being backed by the power of the U.S. military. If it truly loses its value, we have much bigger problems (at that point, ammo, non-perishable foods, etc. will be the new currency).

 

So when the prepper world starts people will want gold? What will that do for them?

 

Yeah, look at any country thats gone trough a period of civil unrest. This is exactly the case. Spot on.

 

I think you took this slightly out of context. The point is that actual objects with known uses will be valued at their worth. I agree that gold will likely not be worth anything until electronics and machines become valued again. However, in the context of the conversation, gold would have some value that is likely going to be much greater than that of paper money. Bullets, ammo, food, clean water will be the official currencies.

To this point, I own a Tacoma so bring on the end of the world. Until then, since we live in a highly developed country, and are very privileged, I'm going to resume worrying about my all-consuming first world problems. Anyone make money today?

 

I tried. They denied me. Weird thing is I’ve got two CC with them and never a late payment and they keep upping my limits without me even asking. So confusing.

I really like their app and was hoping to use the bank account on the app as well. I like when everything can be tied into one simple app. Similar to mint.

 

That brings up something I've always wondered about. I can probably follow this up with a Google search but surely some of the savvy participants in this thread know the answer. What exactly does "FDIC insured" mean? Your money in a bank is insured if the bank were to go insolvent? Is it insured dollar for dollar or pennies on the dollar?
And SIPC/FINRA insured.... what does that mean? Your stock market invested dollars certainly aren't insured against loss of value so what is "insured"?
Is it all just crap they spew to make you feel better?

 

Quarter million $$$ fully insured.

https://www.fdic.gov/deposit/deposits/faq.html

 

As other members have posted, it means the contents of your bank account is insured up to 250k by the federal government, regardless of how the banks loose your money. Its is an almost impossible task to get your money back, and usually takes years. The benefit of the insurance is that the in order to have this rating, the bank must comply with certain business and banking regulations outlined by the feds. These regulations prevent them from doing risky and unethical things with your money, which also means there is less chance of you loosing money in the first place. Of course, it also raises questions about what you should with your cash if have more than 250k laying around. A common scenario is someone with a large investment portfolio gets scared, pulls out of the market, and wants to sit on the cash for a couple years. I suppose you could distribute it across multiple fdic insured accounts, though I am unaware if there are limitations on the number of insured accounts one person can own.

Hope that helps.

 

So where we going this week? Up or down. I think we've got a couple more percent to go before the bottom falls out.
I'm thinking the s&p500 will hit 3000 in the next week or two.

 

Agree, then back to the 2,800’s I bet.