Investing in REAL STUFF.

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

  1. dgmodel

    dgmodel Guest

    even now??? whats overvalued? rates could go up? and not all realestate is a sound investment whether commercial or residential the property needs to be appraised, inspected, and etc...
     
    #11     Jan 13, 2004
  2. dgmodel

    dgmodel Guest

    same here if its making me money i dont care if the ticker symbol is S H I T... if investing in real companies was with solid fundamental earnings and etc was key as a trader i wouldnt have been involved in room, tasr, fcel, phsy (now phs), and many others... damn we wouldve missed out in all of 98-00...
     
    #12     Jan 13, 2004
  3. I don't know how to break this to you ... but if we are ever in an armageddon situation such as a post nuclear holocaust (useful only for thought experiments since it is of an infintesimal probability) where share certificates become worthless (also an occurence of infintesimal probability), futures contracts will most certainly be voided and real estate deeds will also be nullified.

    The value of financial instruments are held together by laws of the land. In your scenario, where laws evaporate in a Mad Max scenario, no financial instrument will be worth the paper it is written on. Owning "real" assets is also useless, since the value of "real" assets is ALSO held together by laws of the land. In armageddon, no one is going to make you rich by paying you for your wheat or gold - they'll just kill you for it.

    Your only path to wealth under Armageddon is possess force of arms (ordnance + ammunition) OR skills useful to those who possess force of arms. I would suggest investing in a carpentry course, a metal working course or learn how to farm rather than buying gold, wheat or real estate. Alternatively, you could also lock yourself up in a mountain cabin with an M16 :)

    Btw, you don't have to imagine Armageddon, just look at Zimbabwe and what is happening between the former wealthy land owners, the poor people and the soldiers. That's exactly how Armageddon will play itself out.

    There are other armageddon scenarios for equity holders that are already well known throughout history - excessive speculation without credit controls eradicated the Kuwaiti stock market in the 80s, conversion to communism wiped out the stock markets in Moscow (or was it St Petersburg) and Shanghai.

    Those markets were so important in their day that the impact is as if the Nikkei traded at 0 tomorrow!

    I don't worry about Armageddon - because that's significantly further out of the money than my FCM blowing up, which is slightly further out of the money than my trading blowing myself up, which is significantly further out of the money than my stop loss being hit ....... which is precisely what I spend most of my time worrying about :)

    Cheers!
     
    #13     Jan 13, 2004
  4. maxpi

    maxpi

    I spent many a Saturday with a wonderful fundamentals database and a screener looking for correlations between fundamentals and short term profits. To make a short story long, basically I did not find much.
     
    #14     Jan 13, 2004
  5. Best investment???

    Yourself???

    :D
     
    #15     Jan 14, 2004
  6. #16     Jan 14, 2004