On "Intellectual Monocultures", Record Soybean Prices And Absolute Returns
Back on March 7, 2011, when discussing the phenomenon of Zero Hedge, prominent tech blogger and recent Bloomberg paid content expansion Paul Kedrosky had this to say: "After prolonged exposure [to Zero Hedge] I have to turn off my wi-fi not to sell all my U.S. dollars for physical gold, start an anti–Goldman Sachs blog and buy a Kansas soybean farm protected by a moat. But here is the crazy thing: Zero Hedge — a morning zoo of pessimistic financial blogging — is fun. Granted, you (O.K., I) can't read it for long without the aforementioned soybean-farmer effect, but the downbeat site has found an entertaining niche at the intersection of The X-Files, finance and tireless anti–Goldman Sachs–ishness. So while I don't read Zero Hedge regularly — it's too bearish, too conspiratorial and too much of an intellectual monoculture — I like knowing that it exists." This is all poetically ironic. Because in the 15 months since this statement made the public record, gold has returned 13.24% (after hitting an all time record high) while Goldman has declined by 33.85%...
... But most entertaining is that moments ago soybean futures just hit an all time high, and are now up 36% since March 7, 2011.
Perhaps that Kansas soybean farm, with or without a moat, would not have been such a bad investment after all.
Then again, it is oftentimes wiser to urge the nouveau intelligentsia of the world to piggyback into the latest bandwagon of brilliance-cum-slam dunk investment such as Facebook. After all it is techy, it's growthy, and is full of sophisticated buzzwords.
As for this intellectual monoculture, we will stick with the 20%+ blended YoY, if too bearish and conspiratorial, thing.
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