The rise in the vix and the roller coaster US stock market
The is the closest analogy I can make to playing the US markets. It does not seem to matter whether you are long or short. Perhaps short is safest for the next fortnight. Scary? Of course!
Based on my conversations with colleagues and friends, they share a similar view. But this is one of the market's mains roles, to confuse as many people as possible. That is why I feel that longer term investors should have minimal allocations to equities on the long or short side, because there is way too much govt intervention and accounting rule changes to determine a reasonable price for most stocks. Fortunately though I think gold will continue to outperform most other asset classes because of all the fundamentals that align in its favor. Over the weekend I read a really good article at http://www.goldalert.com/stories/Gold-Price-Up-Dollar-Down-Does-it-Really-Matter that discusses the Fed's role in creating many of the monetary problems in our country, and how the gold price and gold mining companies should benefit from the Fed's money printing efforts to stave off deflation. There are several unintended consequences of the Fed's unprecedented measures that have the potential to cause even further damage to fiat currencies, and g*d knows what to this roller coaster of a stock market.
Thanks for both of your informative comments, Mike. I'll check out that gold-site link. However, I think a crash may be imminent - but there again no one can safely predict the future.
2 comments:
Based on my conversations with colleagues and friends, they share a similar view. But this is one of the market's mains roles, to confuse as many people as possible. That is why I feel that longer term investors should have minimal allocations to equities on the long or short side, because there is way too much govt intervention and accounting rule changes to determine a reasonable price for most stocks. Fortunately though I think gold will continue to outperform most other asset classes because of all the fundamentals that align in its favor. Over the weekend I read a really good article at http://www.goldalert.com/stories/Gold-Price-Up-Dollar-Down-Does-it-Really-Matter that discusses the Fed's role in creating many of the monetary problems in our country, and how the gold price and gold mining companies should benefit from the Fed's money printing efforts to stave off deflation. There are several unintended consequences of the Fed's unprecedented measures that have the potential to cause even further damage to fiat currencies, and g*d knows what to this roller coaster of a stock market.
Thanks for both of your informative comments, Mike. I'll check out that gold-site link. However, I think a crash may be imminent - but there again no one can safely predict the future.
Post a Comment