Gyroscopic Investing

Seriously, though, weeks like this make me appreciate the PP more than ever.

It's ugly out there.  The markets are in a really foul mood.

Bad vibes like this set off stampedes.

I'm kind of use to the volatility now. I get worried when things are going too smoothly.

MT,

I tend to like times like these when one asset is asleep (gold), one is hated (stocks), one is flavor of the week (bonds).  It shows capital moving, which is good for the portfolio.  I don't like seeing all three volatile classes in bullish cohesion because it means liquidation to cash is right around the corner.  Now where did you hide that glue?

The glue is in the bunker betwixt the ammunition and powdered water. 

This gold and silver action is really amazing.

Oil is also putting on quite a show.

It's amazing to watch in real time (especially with the PP as a security blanket).

I'm only watching the markets for entertainment value.    (I know it's better for my portfolio if I ignore it.)

MediumTex wrote: This gold and silver action is really amazing.

You're not kidding.  It's quite fascinating to watch.

I've got a rebalance coming up and the temptation to market time is overwhelming.  I'm going to have to pick a day where I will do absolutely everything in one swoop, no matter what.

The gold correction is a snoozer in my opinion.  The silver correction is quite the fireworks display, though.  I was seeing chatter on some of the pro-gold/silver sites that once silver breaks through $50, the next stop is $100!  I had a good laugh at that one as it was already up 400% in a few years.  I think it's really hard for people to stay agnostic with investments.  At some point we'll see the real parabolic show in precious metals, but I'd be very surprised if it was this year.  Just wait until your neighbor starts talking about how much he made buying gold/silver/PM stocks.  Then the real show will begin.

Wonk wrote: At some point we'll see the real parabolic show in precious metals, but I'd be very surprised if it was this year.  Just wait until your neighbor starts talking about how much he made buying gold/silver/PM stocks.  Then the real show will begin.

My personal sell signal is when I hear that Rick Ferri has started wearing a Mr. T-style cluster of gold necklaces.

Rick Ferri, circa 2014:

heh heh. Rick is looking buff and blingy.

I don't think this merits its own thread, but why does your post count read leet, MT?

dualstow wrote: I don't think this merits its own thread, but why does your post count read leet, MT?

That's a good question.

I wish I had an answer to it.

Maybe it will just go away on its own.

I'm going to think "anti-leet" thoughts for a while and see if that helps.

***

EDIT: It looks like the very first wave of anti-leet thoughts did the trick.

I guess the market thinks that QE is ending and the party's over (for now). I wonder what will the Fed decide to do next.

Gumby wrote: I guess the market thinks that QE is ending and the party's over (for now). I wonder what will the Fed decide to do next.

QE3 will arrive Thursday August 18, 2011, in the amount of $800 billion.

It's almost too easy to see all of this coming.

I obviously may be wrong, but I just don't see how else things can unfold.  The economy is showing us that it is unable to have self-sustaining growth without more of the bad debt being purged from the system, and the current political situation simply won't permit that debt to be purged.  What we are left with are periodic Fed-administered adrenaline shots to the heart of an otherwise dead economy. 

It truly is a "Weekend at Bernanke's" economy.

That cartoon is too funny.  My Fidelity account page tells me Citibank is having a 10:1 reverse stock split soon, so the economy must be recovering (lol)...