Because it is.
Fear? A final safe haven?
I’ve read a thousand articles.
Todd says, “Gold is rising because the world is coming to an end and everybody wants hard assets.”
Of course, the world isn’t coming to an end.
Gold is hype. Gold is getting talk and publicity. Everyone has their reason, including the end of the world, the end of the dollar, China stocking up on gold, etc.
Will gold keep rising? Is it too late to jump in? Is gold in a bubble? I don’t think so — yet.
My theory about bubbles is: When the price suddenly goes parabolic, you’re in a bubble. Look at Broadcom in 1998-1999,. Nice rise in 1998 and early 1999. Probably justified. Then suddenly the price goes nuts, along with all the talk about the Internet doubling in size every three months, etc. As it rises through the roof, you sell and sell and sell. By the time it’s way up there, you have little left. You get rid of your remaining shares based on a 8% to 15% stop loss.
So, with gold. But it hasn’t gone parabolic, yet.
I own two Dow component stocks with high dividend yields — AT&T at 5.8 percent and Verizon at 5.9 percent. They’ve edged up in recent months and could gain a little more.
Dividends make the end of the world more palatable.
What can you believe, and why? Goldman Sachs said today the U.S. economy is likely to be “fairly bad” or “very bad” over the next six to nine months. My first reaction was “Who gives a rat’s ass for what Goldman thinks?” My second reaction was “Why? What sneaky way will they make money from predicting that things are awful?” My answer (I’m still mulling) is that it has something to do with bonds. Selling them back to the Feds at a gigantic profit.
“We see two main scenarios,” analysts led by Jan Hatzius, the New York-based chief U.S. economist at the company, wrote in an e-mail to clients. “A fairly bad one in which the economy grows at a 1 1/2 percent to 2 percent rate through the middle of next year and the unemployment rate rises moderately to 10 percent, and a very bad one in which the economy returns to an outright recession.”
The Federal Reserve will probably move to spur growth as soon as its next meeting on Nov. 2-3, Hatzius said. Expectations for central bank action have already led to lower interest rates, higher stock prices and a weaker dollar, according to Goldman, one of the 18 primary dealers that are required to bid at government debt sales.
Technology’s progress. Ain’t life (and Photoshop) wonderful?
Paraprosdokians. Figure of speech in which the latter part of a sentence or phrase is surprising or unexpected. That’s the contemporary definition. I prefer “reverse logic.” it’s the essence of great humor.
+ I asked God for a bike, but I know God doesn’t work that way. So I stole a bike and asked for forgiveness.
+ I want to die peacefully in my sleep, like my grandfather. Not screaming and yelling like the passengers in his car.
+ Light travels faster than sound. That’s why some people appear bright until you hear them speak.
+ If I agreed with you, we’d both be wrong.
+ Knowledge is knowing a tomato is a fruit; Wisdom is not putting it in a fruit salad.
+ Evening news is where they begin with ‘Good evening’, and then proceed to tell you why it isn’t.
+ To steal ideas from one person is plagiarism. To steal from many is research.
+ A bank is a place that will lend you money, if you can prove that you don’t need it.
+ Why do Americans choose from just two people to run for president and 50 for Miss America?
+ Behind every successful man is his woman. Behind the fall of every successful man is usually another woman.
+ You do not need a parachute to skydive. You only need a parachute to skydive twice.
+ The voices in my head may not be real, but they have some great ideas.
+ Always borrow money from a pessimist. He won’t expect it back.
+ Hospitality is making your guests feel like they’re at home, even though you wish they were.
+ Change is inevitable, except from a vending machine.
+ You’re never too old to learn something stupid.
+ I used to be indecisive. Now I’m not sure.
+ Money can’t buy happiness, but it sure makes misery easier to live with.
Harry Newton who bought a little more SGOL yesterday and wonders why he still can’t beat his 35-year tennis opponent.
