401k to IRA to Gold? (broker, puts, income, market)
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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.
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.
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.
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.
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.
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."
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.
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 .
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.
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