Gyroscopic Investing

I saw this on Zerohedge:



Now all they gotta do is realize that they cannot predict the future (or get away from their Doomer Porn), and they'd have the PP.  Although don't count on them ever coming to that realization.

They are obviously Gold Buggers since I'm not sure gold would do well in a "Greed" environment...and likely not very well during a deflation, unless nominal interest rates went negative and there was a lot of fear surrounding the solvency of the system.

The other point I would make is that they have buy and sell the wrong way around. For example, we want to be in a position to sell gold during inflation, as that is when we will get a great price for it. Of course you have to have already bought it when it was cheap, say... during a period of strong growth.

Buy cheap, sell expensive. It's not that complicated.

Jake wrote: The other point I would make is that they have buy and sell the wrong way around. For example, we want to be in a position to sell gold during inflation, as that is when we will get a great price for it. Of course you have to have already bought it when it was cheap, say... during a period of strong growth.

Buy cheap, sell expensive. It's not that complicated.

Haha, so true.  Buy cheap and then let it carry your portfolio for several years, while you're pouring new money (or rebalancing) into the hated asset(s), which will take over and carry the portfolio once the economy turns.  Lather, rinse, repeat.  A thing of beauty!

Jake wrote: The other point I would make is that they have buy and sell the wrong way around. For example, we want to be in a position to sell gold during inflation, as that is when we will get a great price for it. Of course you have to have already bought it when it was cheap, say... during a period of strong growth.

If you read the full report, the author is suggesting that the grid represents what the pavlovian response of the market is — not what the smart money should be doing.

It's funny because the guy that runs the site, whoever he is, is obviously a very intelligent man and probably works as a trader somewhere in NYC.  Yet, the constant doom/gloom "sell everything but gold and silver" gets old very fast.  I guess their advice on zerohedge is like a stopped clock - it tells the right time at least twice a day.  Similar to Peter Schiff - if you keep repeating the same message long enough eventually the market conditions will align with your version of reality.

Storm wrote: It's funny because the guy that runs the site, whoever he is, is obviously a very intelligent man and probably works as a trader somewhere in NYC.  Yet, the constant doom/gloom "sell everything but gold and silver" gets old very fast.  I guess their advice on zerohedge is like a stopped clock - it tells the right time at least twice a day.  Similar to Peter Schiff - if you keep repeating the same message long enough eventually the market conditions will align with your version of reality.

And once the doom virus takes root in someone's brain it can be darned near impossible to talk them out of it, no matter how much things improve.

The same thing happened in the 1980s with the Soviet Union and the nuclear threat--there was a group of people in the U.S. who were certain that nuclear war was a certainty and you just couldn't talk to them about the idea that everything might turn out okay.  If you pressed the case that the end of the world might not be imminent they would just dismiss you as someone who didn't "get it."

There are many varieties of doom communities, and the one thing they all have in common is that their leaders keep the narrative alive through fear.

I love a good doomer yarn as much as anyone (I'm partial to peak oil myself), but to me most of it is more in the nature of a parlor game than an imminent post-TEOTWAWKI struggle for survival.

Apparently Doomer Porn pays well, Glenn Beck signs a five-year $100 million contract.

Good for him.