Lessons Learned

[lannarebirth]

If you're an investor, you should never lose any money without a commensurate amount of wisdom gained. So, what have you learned from this most recent Bear Market/Global Correction/Financial Crisis/Liquidity Trap/Credit Crunch ?

Here's an easy one. Commodities are not an asset class.

[thaihome]

Nothing new, just a confirmation that people love to get hysterical.

TH

[lannarebirth]

Nothing new, just a confirmation that people love to get hysterical.

TH

Hmmm. I'm not sure they love to get hysterical. I think they love to make money from very little effort, and they love to be complacent, and they love to believe that the value of their work and assets is somehow significantly greater than billions of other people. Maybe the hysteria comes from the realization of that?

[cmsally]

That there is no such thing as intrinsic value - but then I knew that anyway.

[Naam]

So, what have you learned from this most recent Bear Market/Global Correction/Financial Crisis/Liquidity Trap/Credit Crunch ?

the valuable lesson i learned is that having too much cash during a crisis can cause as many sleepless nights as being fully invested. not even in my wildest dreams i would have thought of that possibility before!

[AlexLah]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

[churchill]

If you're an investor, you should never lose any money without a commensurate amount of wisdom gained. So, what have you learned from this most recent Bear Market/Global Correction/Financial Crisis/Liquidity Trap/Credit Crunch ?

Here's an easy one. Commodities are not an asset class.

Commodoties apart from PM .

http://www.goldseek.com/quotes/charts/5yeargoldchart.php

[OriginalPoster]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

[lannarebirth]

That there is no such thing as intrinsic value - but then I knew that anyway.

True, sally.

[lannarebirth]

So, what have you learned from this most recent Bear Market/Global Correction/Financial Crisis/Liquidity Trap/Credit Crunch ?

the valuable lesson i learned is that having too much cash during a crisis can cause as many sleepless nights as being fully invested. not even in my wildest dreams i would have thought of that possibility before!

Me either. At least if we lose some, we'll lose it all at once, rather than watching it drop 5%/week in value. Still, while cash may not be King right now, I don't think its trash either.

What's so bad about this current "crisis" is that it will force those that have acted prudently thusfar to spread their risk into some things that are sure not to payoff well, against the possibility of losing far more by sitting and doing nothing. God, I hate that.

[hhgz]

"That there is no such thing as intrinsic value..."

Of course there is, and that's why it's referred to as "intrinsic". The extrinsic value changes frequently.

[lannarebirth]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

Really hardcore goldbugs are short the dollar too of course.

[OriginalPoster]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

Really hardcore goldbugs are short the dollar too of course.

And the true financial geniuses turned out to be the blue-haired grannies in Iowa who had all their money in CDs.

Edited February 24, 2009 by OriginalPoster

[Naam]

Well now you know at least why you have so litlle sleep at night...... You can still buy Gold Naam if you have piles of cash at hand.

i never mentioned that i did not buy or did not own any gold or silver Alex. my opposing gold is directed at the hardcore goldbugs who think owning gold is the non plus ultra of investing and that it will solve any problem if the "big bang" materialises. goldbugs claim this since decades but forget to look at the big picture starting in 1971/73.

[churchill]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

Really hardcore goldbugs are short the dollar too of course.

I have been in Blackrock Gold and General for the last 5 years - It has done pretty well but taken a hit in the last 6 months - Gold mining shares still have a lot of catching up to today's gold price and even if gold goes down to $800 perhaps are 50% undevalued . I still think gold will go higher in the short term and am sticking with my investment - However am nervous about a bubble forming - I don't think that has yet happened but if gold prices go up to $1200 or more I will be looking to sell .

[AlexLah]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

I just only bought the real metal (Thai Bullion) and have it here in my safe, I have about 30% of my money in actual gold. 50% in funds (YTD losses 2.3%, overall 17%) and the rest in savings account. The money in the funds I will liquidate somewhere next week and I might invest 50% of that in metals like gold and silver maybe some platinum. I see the stock market is in for another big slow but steady crash.

As Naam mentioned, nowadays there is no way to know which is the best solution as whatever you do it will always give you "sleepless nites"

I didn't know you had Gold bars in your personal safe Naam, you have?

[OriginalPoster]

Well now you know at least why you have so litlle sleep at night......

You can still buy Gold Naam if you have piles of cash at hand.

If you were smart enough to have bought only gold bullion before all hel_l broke lose, and not also bought into gold mining stocks, and stayed away from other commodities completely, then I tip my hat to you. Most goldbugs didn't do that that though.

I just only bought the real metal (Thai Bullion) and have it here in my safe, I have about 30% of my money in actual gold. 50% in funds (YTD losses 2.3%, overall 17%) and the rest in savings account. The money in the funds I will liquidate somewhere next week and I might invest 50% of that in metals like gold and silver maybe some platinum. I see the stock market is in for another big slow but steady crash.

As Naam mentioned, nowadays there is no way to know which is the best solution as whatever you do it will always give you "sleepless nites"

I didn't know you had Gold bars in your personal safe Naam, you have?

When did you go 80% into gold bullion? I'm assuming that by "funds" you mean funds such as GLD as opposed to funds of gold mining stocks.

[AlexLah]

No with funds I mean a combined basket of stocks that historically performed well.

So I have my Gold that gained about 25%, stocks that declined overall about 17%, and the rest in cash.

Lost a bit but not too much.

[Naam]

I didn't know you had Gold bars in your personal safe Naam, you have?

i don't Alex, my wife has them.

[AlexLah]

Dammit, you are Naam, ha ha ha!