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Re: Losing Graciously

By: Decomposed in ROUND | Recommend this post (0)
Sun, 19 Feb 12 6:49 AM | 49 view(s)
Boardmark this board | De's Test Board 		Msg. 39010 of 45651
(This msg. is a reply to 39009 by capt_nemo)
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re: "I'm a lil confused on this one DE??"

Tim Knight would be correct, except that the only reason for gold's ascent is its recognition by many as an alternative to fiat money.

In other words, if a person wants to view the market in terms of fiat money, they should look at an ordinary $SPX chart. If they want to view it in terms of fiat's FAILURE... which is particularly meaningful if they believe fiat money is going to continue being abused by those who mind the mint... they should look at $SPX/GLD.

AAPL's climb has been for other reasons, so the $SPX/AAPL chart says little.




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
Losing Graciously
By: capt_nemo in ROUND
Sun, 19 Feb 12 6:28 AM 		Msg. 39009 of 45651

I'm a lil confused on this one DE??

Submitted by Tim Knight from Slope of Hope on 02/18/2012 18:03 -0500

Apple

There's a very well-known publisher of market commentary which - like me - has been largely bearish over the past two and a half years. What is irksome to me is that, in the face of a market which has done little but push higher all this time, they keep pointing to a chart showing that in "real dollars" (in their view, gold) the market has indeed been crashing.

Ummm, that's stupid. Gold is an asset, but it isn't used as money in our society. Do you buy groceries with it? Pay your mortgage with it? Pay school tuition with it? I didn't think so.

I could make ANY prediction about ANY market and be correct if you allowed me to choose some kind of "currency" as a benchmark. Over any span of time, you can find something which has gone either up or down in value to support your claim, if that's what you're allowed to use as your divisor.

Let's try this. I've been bearish on the market, as you know. Let's say that the shares of Apple, Inc. are the most meaningful form of "real money." How have I done? Looking at the chart below, I'd say I've been spot-on.

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I realize there's a difference between Apple and gold, but not much. 99.9% of our transactions are done within the borders of the United States, using U.S. currency, so the nominal value of the stock market, measured in dollars, is the most accurate judge of how predictions have panned out. I've been, by and large, bearish. I've been wrong. I'm not going to completely lame-out on you and divide the stock market by the value of gold, for God's sake.

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more,,,,,,,,,,,,,,,,,,,,,,,

http://www.zerohedge.com/contributed/losing-graciously?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

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