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So, any time an article like this comes along, I think something like "interesting, I guess I should go out and short the Yen... but wait, if everyone is alread
by msluyter 13y ago
So, any time an article like this comes along, I think something like "interesting, I guess I should go out and short the Yen... but wait, if everyone is already shorting the Yen, won't that already be baked into the price?" s/Yen/Gold/g or whatnot.
I've sometimes thought that I should just bet against all seemingly persuasive investment articles like this one on the principle that the market will essentially over-indulge in said advice and have to correct in the opposite direction. (Would be interesting to test that theory with historical data.) Case in point: I bought a few silver ETF shares a while ago on the theory stated (by lots of people like SeekingAlpha and the like) that quantitative easing will cause inflation and people will rush to precious metals. (Well, that and I probably have a thing for silver/gold.) Since then, it's dropped over a third. Now I'm a little more cautious about betting on macro-economic trends...
- VLM 13y ago"Case in point: I bought a few silver ETF shares a while ago" My dollar cost averaging long term for silver is about $5 per oz and for gold is about $550 per oz... You select your profit when you select your purchase price. Real estate is kinda like that too.
- yajoe 13y agoLove the idea. The rub is figuring out which article will influence people (100s are written every day at Seeking Alpha for many views of the same issue) -- if you can predict influence then I think you've found a nice little money machine :)
- deleted 13y ago[deleted]