Is the PP going to hold up?

[jason]

Bonds and stocks are going down lately. Gold has been pretty flat. If this trend continues, is gold likely to come to the rescue, even if inflation stays low? Have there been economic scenarios in the past that are similar to what is going on now? If so, how did the PP play out?

[buddtholomew]

Pretty sad if you ask me.
PP falling like everything else, nothing special to see here.
Gold +.3 while S&P down 2%+.
No magic, just smoke and mirrors

[Cortopassi]

I think the thing to remember, as many have said, the correlation is not day to day. Gold and bonds were flat today, sure.

Let's see what happens over the next weeks and months assuming that the downturn is not just some weird volatility blip and that is is sustained. You are going to be hearing screams and moans that the Fed can't raise rates in this environment and real looking at alternatives.

I don't think people are there yet, but another 1000 point down day today will get them much closer to that. And we'll see some green on bonds and gold.

[dualstow]

All I can do is hear the OP text in my mind in the voice of the 60s Batman TV narrator.

[Xan]

Tune in next week, same Bat-time, same Bat-channel!

[buddtholomew]

Bitcoin is +10% and gold is + .3

Duped.

[technovelist]

Bitcoin is +10% and gold is + .3

Duped.

Obviously you should sell all your gold and buy Bitcoin.

Or rather, you should have done that yesterday.

[Ugly_Bird]

Obviously you should sell all your gold and buy Bitcoin.
Or rather, you should have done that yesterday.

Should have done it when Bitcoin was close to $20k

[buddtholomew]

I was talking to one of my offshore resources who bought into BTC at 3K, 10K and then the bulk of the investment at 17K...needless to say he is not happy.

I’m not that type of speculator but I get the sarcasm.

[technovelist]

I was talking to one of my offshore resources who bought into BTC at 3K, 10K and then the bulk of the investment at 17K...needless to say he is not happy.

I’m not that type of speculator but I get the sarcasm.

Since you seem to have the idea that one can determine the best investments by looking at their past records, Bitcoin is obviously #1 by light years. Just look at how far it's come in only 10 years or so!

This is called "performance chasing" and is an excellent way to lose money.

It is impossible to know in advance which investments will do the best, because if that were possible, people would pile into them until they were fairly priced. Of course different people have different opinions, or there wouldn't be a market at all, but no one knows the future.

That's the advantage of the PP: it doesn't require you to know the future to do pretty well over a long period of time.

[Kriegsspiel]

“Why keep something in gold? It’s stable. But why keep it in gold when it stays in a $100 range, when I could buy Bitcoin when it is increasing everyday?” Salamida said.

http://fortune.com/2018/02/08/bitcoin-p ... price-buy/

bud?

[blue_ruin17]

If stocks keep nose diving, either gold or LTT will kick in. My bet is gold -- figuratively, of course, because technically am betting on both... and on a stock rebound, for that matter.