Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-23-2015, 05:02 PM
 
106,242 posts, read 108,237,907 times
Reputation: 79781

Advertisements

markets are kept from knowing future earnings and you can go to prison for leaking out what they are if you work for that company . you can give guidance and say things may not be so good or they may be better but you can't leak earnings if you know until it is announced to all.

the stock market is based on a big guessing game as investors try to predict the earnings figures. analysts will talk to competitors , suppliers , shippers , etc. to get hints.
Reply With Quote Quick reply to this message

 
Old 03-23-2015, 05:06 PM
 
Location: California side of the Sierras
11,162 posts, read 7,612,234 times
Reputation: 12523
Quote:
Originally Posted by mathjak107 View Post
actually stocks trade on greed , fear and perception of the future of the company, that is why earnings are kept secreat except for some guidance as they call it . the here and now is already known so any investment you make will be based on the above going forward.

they are exctly the same thing commodities trade on . greed , fear and the perception of the future of the commodity.
In the short-term, sure, stocks rise and fall based on anything.

In the long-term, stocks rise if the company is profitable.

Corporations (hopefully) earn money doing whatever it is that they do, and may return some of that in the form of dividends to shareholders.

Gold does not do a darn thing. It does not earn a profit and does not pay a dividend. It's value rises only if speculators believe it is worth still more.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:07 PM
 
Location: California side of the Sierras
11,162 posts, read 7,612,234 times
Reputation: 12523
Quote:
Originally Posted by mathjak107 View Post
markets are kept from knowing future earnings and you can go to prison for leaking out what they are if you work for that company . you can give guidance and say things may not be so good or they may be better but you can't leak earnings if you know until it is announced to all.

the stock market is based on a big guessing game as investors try to predict the earnings figures. analysts will talk to competitors , suppliers , shippers , etc. to get hints.
Yes, it is. That is precisely why I stick with broad market index funds.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:08 PM
 
106,242 posts, read 108,237,907 times
Reputation: 79781
me too.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:09 PM
 
106,242 posts, read 108,237,907 times
Reputation: 79781
Quote:
Originally Posted by Petunia 100 View Post
In the short-term, sure, stocks rise and fall based on anything.

In the long-term, stocks rise if the company is profitable.

Corporations (hopefully) earn money doing whatever it is that they do, and may return some of that in the form of dividends to shareholders.

Gold does not do a darn thing. It does not earn a profit and does not pay a dividend. It's value rises only if speculators believe it is worth still more.
gold like wheat and corn and steel do not have to earn a thing . they are commodities and that is what they do they are used , wanted and needed.

it is like my job as a wholesaler , i buy a box , i sell a box.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:11 PM
 
Location: California side of the Sierras
11,162 posts, read 7,612,234 times
Reputation: 12523
Quote:
Originally Posted by AmFest View Post
You missed one important determinant of stock price: market expectation. Given the same profitability of a corporation, its stock price can fluctuate based on P/E multiple which is kind of a random number influenced by expectation about the stock market, or as you call it, speculation.
Sure. Eventually though real time catches up to expectation and the share price adjust accordingly. What might happen in 2014 is no longer priced into anything.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:14 PM
 
2,401 posts, read 3,249,270 times
Reputation: 1837
Quote:
Originally Posted by mathjak107 View Post
gold like wheat and corn and steel do not have to earn a thing . they are commodities and that is what they do they are used , wanted and needed.
I don't know about gold. I remember what Warren Buffett said in 1998:

"(It) gets dug out of the ground in Africa or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:16 PM
 
Location: California side of the Sierras
11,162 posts, read 7,612,234 times
Reputation: 12523
Quote:
Originally Posted by mathjak107 View Post
gold like wheat and corn and steel do not have to earn a thing . they are commodities and that is what they do they are used , wanted and needed.
Wheat, corn, and steel have useful purposes. People need to eat and need some items made of steel. Gold not so much. I might want a gold necklace, but there is a limit to what I will pay for one. I will pay whatever I have to pay to eat and feed my family.
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 05:57 PM
 
106,242 posts, read 108,237,907 times
Reputation: 79781
gold is not only an industrial metal but it is held by central banks around the world. in fact 2008-2009 saw commodities other than gold plunge while gold held firm.

there are as many uses for and demand for gold as any other commodity , more if you count central banks and jewelry in countries like india with billions who hold it in very high esteem.

i am no gold bug nor do i own gold now but to think it is much different than a stock is really not the case. it just isn't the right time for gold .
Reply With Quote Quick reply to this message
 
Old 03-23-2015, 06:03 PM
 
2,401 posts, read 3,249,270 times
Reputation: 1837
Quote:
Originally Posted by mathjak107 View Post
gold is not only an industrial metal but it is held by central banks around the world. in fact 2008-2009 saw commodities other than gold plunge while gold held firm.

there are as many uses for and demand for gold as any other commodity , more if you count central banks and jewelry in countries like india with billions who hold it in very high esteem.

i am no gold bug nor do i own gold now but to think it is much different than a stock is really not the case. it just isn't the right time for gold .
There has been very little "right" time for gold in the past 100 years. Every historical returns chart will show that.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing
Similar Threads

All times are GMT -6. The time now is 07:35 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top