Investing in REAL STUFF.

Discussion in 'Economics' started by Reitberg, Jan 12, 2004.

  1. I'm a young guy, and I have been trading all sorts of different markets for about 5-6 years actively.

    I'm really beginning to believe that Wall St, Polliticians, and guys like Kudlow, and Cramer want us to invest in stocks and bonds of companies that do not make any money, or at least do not have any significant fundamental reasoning for investing in.

    Furthermore, I'm almost certain that these "great wizards" are expecting us to not invest or even go short on things that are REAL, such as Gold, Silver, Corn, Wheat.

    I'm just curious to know if there are others out there that share my point of view?
     
  2. Nobody shares my view?

    Maybe you are all sheep and we are about to get taken out in the 3rd leg of the bear market, and 90% of your will be broke and begging for financial support.

    There, maybe somebody will reply now.
     
  3. dgmodel

    dgmodel Guest

    just because you have a good company doesnt mean youll have a good stock... and i can give many examples...

    more importantly instead of listening to these ppl why not do your own research and formulate your opinions on co's you feel are are worthy of your time and money... and if they do or dont work out theres only one person to blame...
     
  4. JORGE

    JORGE

    Last time I checked, this site was Elite Trader not Elite Investor, as a trader I don't give a shit if a stock is trading 100 times revenues and making nanotech cow ID tags in China, if its moving I will trade it.
    When I first got involved in this business 10 yrs ago I thought the same way as you, constantly looking for good values. This approach kept me out of the YHOO's and EBAY's until I could not stand watching stocks double in a day while I waited for my value stocks to move a $1. Eventually I learned to trade, making money on both the upside and downside of momentum stocks. If you do not feel nimble enough to catch these moves then stick with the "Real Stuff". I will continue to stick with what's moving regardless of wether or not they have a real business.
     
  5. Anything that you exit for a profit "makes money". It doesn't matter if it is "real" stuff like corn or gold, or the stock of a bankrupt company that doubles on short covering before going to $0 a fortnight later.
     
  6. If you only want to invest in "real stuff" try real estate.
     
  7. Setting aside the fact that P&L remains constant regardless of the underlying, I don't think your conspiracy theory holds water.

    "they" might want to bull stocks for various establishment benefiting purposes, but "they" have also supported "real" things like wheat and sugar in this country. From the little research I've done, sugar policies in this country are downright shameful - daylight robbery from the consumer.

    I don't think the "real" vs "fake" framework is useful in the way you suggest it is.

    respectfully
     
  8. kowboy

    kowboy

    Real estate.
     
  9. If you trade a physical commodity, or a financial futures contract, or an equity, as long as you book a Profit.

    There is no morality in the trading game.
    If you think there is, then you will have some great difficulty to overcome.
     
  10. Great, I got some responses. I had to stir some people up when I posted.

    I was just curious what people thought about how the big guys push these beliefs upon the small investor.

    I share all of your views that it does not matter if a stock is going up or down. If you can make money, it doesn't matter what you are investing in. That is obvious.

    HOWEVER, if we get punished with a nuke or some terrible financial disaster, you will beat yourself to hell over why you had to own a stock that had no P/E and was trading at 80 times expected P/Es.

    All of you guys seem to make a point, which certainly has made sense in the last 20 years since 1974, but what if we return to normality?

    Investing in real things will be all that we have left to invest in.

    I'm sure that most people reading this probably think that I am a @$%&head, but when the punishments hits, I'll be a genious. That is the way the market works.

    When the fit hits the shan, I will have to take people down with my 50 caliber gun on my room to thwart off barbarians trying to steal my gold. I will gladly accept your wives as the entrance fee to my compound.
     
    #10     Jan 13, 2004