• Sprott Money
    01/11/2016 - 08:59
    Many price-battered precious metals investors may currently be sitting on some quantity of capital that they plan to convert into gold and silver, but they are wondering when “the best time” is to do...

US Equity Collapse Erases All Post-QE3 Gains As FANTAsy Stocks Plunge

Tyler Durden's picture




 

But, but, but... it's not a market-driven only by The Fed, right?

 

All major US equity indices (except Nasdaq and its FANTAsy stocks) are now deep in the red since The Fed stopped QE3...

 

Since the start of December stock have been dumped...

 

But FANTAsy stocks are collapsing so far in 2016...

 

As once again, the S&P 500 catches down to The Fed's balance sheet...

 

But it's the fundamentals right?

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Wed, 01/06/2016 - 11:38 | 7005050 potemcam
potemcam's picture

Each time the company was made private, I took my buy-out and invested in Apple and Facebook. My compounded returns have been amazing.

Wed, 01/06/2016 - 11:45 | 7005107 bnbdnb
bnbdnb's picture

Again, it wasn't just as simple as "buy stock and wait". You also had to be right when you re-allocated. This is why the buy and hold strategy is just junk theory. You chose Apple and Facebook, others might have chose Zanga. Again, 29 of the 30 original DOW stocks are worth NOTHING.

Wed, 01/06/2016 - 12:03 | 7005218 potemcam
potemcam's picture

How good is the 'buy and hold' strategy of buying gold at an $1800 handle and holding it as it falls to $1000 working out for you?

When someone talks about being in the stock market for the long term, they are not talking about buying one stock, and then burying their head in the sand for 200 years and not making a single trade. It's only the gold bugs who partake in the 'bury your head in the sand' strategy.

It really just shows how vacuous the gold bug argument is. The only way to prove that gold is a good investment is to force someone to compare the price of gold in 5000BC to a similar investment in the Pharoh Pyramid Building Co., and see what the overall return is 7000 years later. The argument is then that since Pharohs don't build pyramids anymore, then gold is obviously a far better investment. Is that really the best argument that the ZHers can come up with to defend their bad trades in gold over the years? 

Wed, 01/06/2016 - 12:10 | 7005259 bnbdnb
bnbdnb's picture

I'm not a gold bug. I'm an anti-stocks are easy lie meme bug.

Wed, 01/06/2016 - 11:51 | 7005151 mygameon
mygameon's picture

Only if you are the last holder of any issuance of "paper" stock that has no redeemable value.

Many examples of public shares that were taken private that shareholders of record really made bank.

Many examples of private shares taken public that really made bank.

Again buying is easy, selling is hard.

NOBODY except a founder or founding family will hold on to a share of any stock for 100 years.  Therefore, everyone has plenty of time to exit winning positions.  To minimize losing positons and to kill it when opportunities present themselves.

Same is true for PM and land.

Why is it so unacceptable to make money in a stock market.  Especially if you acknowledge it is rigged, why not profit from the Beranke put and take winnings off of the table to invest elsewhere?

Hence the reason I haven't contributed to any tax deferred investment in over 20 years.

Wed, 01/06/2016 - 12:01 | 7005205 sun tzu
sun tzu's picture

Were you allowed to invest in facebook before it went public? I didnt think so

Wed, 01/06/2016 - 12:18 | 7005312 mygameon
mygameon's picture

Why do you assume I have ever owned a share of FB??

I know I didn't state that I have.

Again, my pick for 2016 is KMPH

Give me yours and we'll see who is right.

Wed, 01/06/2016 - 12:37 | 7005437 potemcam
potemcam's picture

I figured most people would see the humour in me suggesting that 200 years ago, when I was moving in and out of Hudson Bay Company, that I was moving in and out of Apple and Facebook. Clearly you didn't.

So, I'll try to clarify here: When I suggested that I was buying stocks in Facebook and Apple in the 1800s, I was joking. 

Sorry to confuse you.

Wed, 01/06/2016 - 12:04 | 7005224 bnbdnb
bnbdnb's picture

Some make bank, some don't. Thats the only point I'm making. "Buy and hold, and you'll have X after X amount of time", when it comes to stocks, is a false meme.

Wed, 01/06/2016 - 11:11 | 7004719 mygameon
mygameon's picture

Potencam, I gave you a green arrow because I like to make money everywhere I see an opportunity and I acknowledge what you are saving to be historical fact.  A fact that has made me lots of currency, even if it has been severely devalued.  I am making market money right now on the downside.

So let me try a different track?  Have you diversified any of your holdings/paper profits into the "touchable" things I value as a SHTF hedge like Pb, PM, Land, an alternative plan, self-sustaining systems, food, and a place in my community.

I am not a gold bug.  I have seven figures non-401k in biotech right now.

My pick for 2016 is KMPH.

Wed, 01/06/2016 - 10:58 | 7004755 bnbdnb
bnbdnb's picture

Who's companies stock are you specifically talking about that could have been bought 200 years ago, that still exists today?

Wed, 01/06/2016 - 11:05 | 7004817 potemcam
potemcam's picture

Hudson's Bay Company.

Wed, 01/06/2016 - 11:03 | 7004797 Bam_Man
Bam_Man's picture

Not surprisingly, your math is WAY off, Jackass.

$10,000 invested in Gold 85 years ago (1930) would be worth be worth $550,000 today.

$10,000 invested in Gold 200 years ago (1815) would be worth even more than that.

Where did you get that $25,000 figure from?

Pulled it out of your ass?

Wed, 01/06/2016 - 11:08 | 7004844 potemcam
potemcam's picture

My numbers are inflation adjusted. Are yours?

Wed, 01/06/2016 - 11:09 | 7004857 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 11:12 | 7004874 Bam_Man
Bam_Man's picture

Yeah, right.

Now tell me another one.

Wed, 01/06/2016 - 15:19 | 7006249 holgerdanske
holgerdanske's picture

"My numbers are inflation adjusted. Are yours?"r

Ha ha!!

Another of your side effects of the money printing craziness of your fiat masters.

With a gold standard, general inflation does not exist.

And as for your statement, that gold also does not last, what planet are you from. You can always buy with gold.

Gold was used by the Egyptians 5000 years ago, and will do today, what it did then.

Give me one fiat currency that can do that.


Fri, 01/08/2016 - 09:22 | 7016518 potemcam
potemcam's picture

You can always buy with gold.

 

Can I? Name me one fast food restaurant where I can buy something with gold. Oh, yeah, none. 

Wed, 01/06/2016 - 11:12 | 7004860 mygameon
mygameon's picture

Bam_man,

So you are talking about 55x return.  Made that few times in the past 15 years with early private investments in biotech.  My kids get to touch those winnings.....You are talking about what would have had to transfer to me (and only me) from great,great,great,great,great-grand parents.  Poor odds there.

Point is diversity and exits/entries of positions is key.

Always easy to buy.  Very hard to sell.

Wed, 01/06/2016 - 09:53 | 7004441 LawsofPhysics
LawsofPhysics's picture

I have made considerable profit from trades outlined on ZH. Markets go up and down. However, at some point you must conserve and protect wealth too. Are you suggesting that the purchasing power of the currency all your precious "markets" are PRICED in is always getting stronger?

You are an idiot. SHORT term, gold is down because the dollar is up.

Now go back 30 years and look at that relationship. Tell me, how long do you expect to live? What about your business? We have been in business for over 80 years. What did gold look like 80 years ago?

Long term thinking and a solid business model is why certain families/businesses remain in the real money asshat. Currencies, like governments, come and go.

Wed, 01/06/2016 - 10:12 | 7004528 potemcam
potemcam's picture
SHORT term, gold is down because the dollar is up.
Gold is at the same level it was in what, 2009? So to you, the short term is 7 years? Maybe 8? Maybe 9? What is your long term, 100 years? I guess your investment strategy will work if you plan to retire when you're 145. Gold is down huge over the short term, and its return over the long term, is negligible. If lying to yourself makes you feel better, go right ahead, but it doesn't change the fact that this market has been a far better investment that a commodity whose only big plus is the fact that it doesn't tarnish.
Wed, 01/06/2016 - 10:16 | 7004545 LawsofPhysics
LawsofPhysics's picture

In terms of my lifetime and the lifetime of my business, yes 7 years is most definitely short term.

Looks like you are starting to learn something after all.

Good for you!

Wed, 01/06/2016 - 10:33 | 7004619 potemcam
potemcam's picture

So when you invest for the 'long term', your goal is to not withdraw any money until after you are dead? After all, if your long term holding period is your 'lifetime', then it wouldn't be available for withdrawl until after you are dead.

In investing terms, long term is not a human lifespan. 7 years is most definitely a full business cycle, and in investing circles, that's considered long term.

Looks like you are starting to learn something after all. Good for you!

Wed, 01/06/2016 - 11:38 | 7005026 LawsofPhysics
LawsofPhysics's picture

No. Gold is not an investment. It is a safe store of wealth that you buy when the economy is booming and it is on sale, not when it is overpriced.

Nowhere do I say we "bought at 1,800".

What a douchebag.

Wed, 01/06/2016 - 09:53 | 7004443 Dethrone The Ba...
Dethrone The Banksters's picture

Gold (and just as importantly, silver) are insurance policies; not investments; oh, and they also retain the principal --- do you retain any principal when you don't use your auto or health insurance? 

Don't worry NIRP and QE4 will save the day!!!!!! Meanwhile, I'll keep stackin phyzzzzzzzz 

Wed, 01/06/2016 - 09:57 | 7004464 SoilMyselfRotten
SoilMyselfRotten's picture

Ummm, whole life policies? (though i agree with you)

Wed, 01/06/2016 - 10:15 | 7004539 potemcam
potemcam's picture

So gold bought at an $1800 handle, which is now at a $1000 handle, has retained its principal value.

I tell you what, I'll buy some $1000 gold and sell it to you for $1800. It's all the same, because the retained value is the same, right?

How long do you have to read ZH before you start believing this faulty logic?

Wed, 01/06/2016 - 09:53 | 7004444 Rock On Roger
Rock On Roger's picture

Today I can buy an ounce of gold using the same amount of Canadian dollars as I used to buy an ounce of gold in July 2011.

Wed, 01/06/2016 - 09:56 | 7004463 LawsofPhysics
LawsofPhysics's picture

sure, let me know what that is in 20 years. long term versus short term thinking.

Wed, 01/06/2016 - 10:27 | 7004585 Rock On Roger
Rock On Roger's picture

Sure, I will. This gold I buy is for long term saving, I don't really care if I ever spend it, it can go to the kids.

I have other things that grow and produce income, (real things, not paper), the gold is for protected savings.

 

Speculators will trade paper until it burns, I prefer real stuff.

Wed, 01/06/2016 - 11:36 | 7005038 LawsofPhysics
LawsofPhysics's picture

Yes, and just like the last world war. When it is over, the banks will loan you all the "fiat du jour" you or your children need, but only if you have physical.

same as it ever was...

Wed, 01/06/2016 - 09:58 | 7004475 potemcam
potemcam's picture

Cool. And if you compound that 0% rate of return over time, how much does your principle investment grow? Do you have any other 0% return investments you would like to recommend?

Wed, 01/06/2016 - 10:04 | 7004496 BeaverCream
BeaverCream's picture

Comparing gold/silver to stocks is like comparing real estate investing to stocks, it's not the same vehicle...many facets to consider.

You're the one that bring them up in tandem as if they're competing ETFs and it's ridiculous...you're just a troll.

Wed, 01/06/2016 - 10:24 | 7004573 potemcam
potemcam's picture

You can't compare gold to stocks?

Yes I can. Let's compare the rate of return. Can you compare the rate of return on those things? I know I can.

Gold has a horrible rate of return. In fact, it's negative over the past 6 or 7 years. There, it's compared.

Just because you are losing an argument, or can't defend yourself, dont' go throwing around the 'troll' word. Go ahead and make an argument, but don't attack the messenger.

Hey, I'm about to see if it's possible to compare rates of return between stocks and real estate now. Do you think that's impossible as well? I'll report back with my findings. 

Wed, 01/06/2016 - 10:06 | 7004508 Rapelomacy
Rapelomacy's picture

Have you not been paying attention to what's happening in the world? Gold is a safe investment that, if you have been smart about, have been doubling down on since it's peak. Your argument is invalid with where the rest of the world stands, as is the typical gold bashing with seething denial.

Wed, 01/06/2016 - 10:40 | 7004647 potemcam
potemcam's picture

>> if you have been smart about, have been doubling down on since it's peak

So basically, if you are smart, you should be buying a money losing investment that continues to lose money, and keep buying the money losing investment and hope it continues to lose, so you can lose more money?

Forgive me if I don't call on you to manage my money for me.

Wed, 01/06/2016 - 12:32 | 7005403 Rapelomacy
Rapelomacy's picture

I will provide you will a chart since you have the mind of a child. Of course, as we know, you can't fix stupid but they do have programs for those in denial.

http://www.kitconet.com/charts/metals/gold/1a-usd-aud-inr-mxp-rub-sar-5y-Large.gif

Wed, 01/06/2016 - 12:32 | 7005404 Rapelomacy
Rapelomacy's picture

I will provide you will a chart since you have the mind of a child. Of course, as we know, you can't fix stupid but they do have programs for those in denial.

http://www.kitconet.com/charts/metals/gold/1a-usd-aud-inr-mxp-rub-sar-5y-Large.gif

Wed, 01/06/2016 - 12:41 | 7005458 potemcam
potemcam's picture

Could you please double post that comment to show everyone that you don't know how to use a computer? Thanks.

So you just proved that the price of currencies fluctuate. Congratulations. Apparently that's ground breaking news to you, but I think most people in the world understand this simple fact. Currencies float. 

Could you possibly add a comparison in there between rate of return of gold as compared to stocks as well? Then you could see how well gold *performs* when compared to another asset class.

 

Wed, 01/06/2016 - 13:33 | 7005717 Rapelomacy
Rapelomacy's picture

I want you to imagine you are sitting in your computer chair in any of those countries where gold is outperforming the currency. Now stop and think would you be posting the same bullshit or would you be scrambling to acquire gold? You are one dense mother fucker I'll give you that!

Wed, 01/06/2016 - 13:33 | 7005718 Rapelomacy
Rapelomacy's picture

I want you to imagine you are sitting in your computer chair in any of those countries where gold is outperforming the currency. Now stop and think would you be posting the same bullshit or would you be scrambling to acquire gold? You are one dense mother fucker I'll give you that!

Fri, 01/08/2016 - 09:24 | 7016529 potemcam
potemcam's picture

Could you please double-post your comment?

I want you to imagine 

I'm not going to stop you from imagining anything you want. Go ahead and day dream. If you want to live in a fantasy world, I'm not going to stop you. But if you want to live in a world where your investments lose money, then buy and hold gold - that doesn't require any imagination.

 

Wed, 01/06/2016 - 11:06 | 7004829 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ha, fuck you, fuck your paper stocks, fuck your faith in the system, and fuck your paper dollars. This meltdown is gonna be epic and people like you are going to be screwed. Ba da da da daaaaa I'm lovin' it.  Burn baby, burn. LOL

Wed, 01/06/2016 - 11:08 | 7004842 Consuelo
Consuelo's picture

Good one.    I mean, it's got the ingredients for a good trolling - perhaps they just need more time in the oven...?

 

 

Wed, 01/06/2016 - 09:41 | 7004380 huggy_in_london
huggy_in_london's picture

i can't help but laugh listening to theis cramer guy.  How the hell does he still have a job?  His "advice" is completely reckless.  I'll bet you that when this thing drops another 100 or 200 points (spx) THEN and only then will he be bearish and tell everyone you should be selling.  So, as a short, when he says "keep buying" I keep smiling.

Keep up the good work d/head

Wed, 01/06/2016 - 09:41 | 7004384 2ndamendment
2ndamendment's picture

The funniest part to the picture above, is I could throw a stone in our community and hit someone with more honor and integrity than any of the secret service agents pictured above. And those guys are the ones allowed to carry the guns? 

Wed, 01/06/2016 - 09:43 | 7004390 2ndamendment
2ndamendment's picture

oops wrong article 

Wed, 01/06/2016 - 09:42 | 7004389 orangegeek
orangegeek's picture

It's a process.  Lot's of swings both ways.

 

A trader's wet dream

Wed, 01/06/2016 - 09:55 | 7004456 LawsofPhysics
LawsofPhysics's picture

"trader"... LOL!!!

You mean, a skimming banker's/financier's or HFT computer's wet dream...

Wed, 01/06/2016 - 09:58 | 7004470 orangegeek
orangegeek's picture

skimming/scalping is correct and you don't need an HFT platform to do it well

 

it's your bag of lemons.  this is what the Fed has built.  your move.

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