It’s a buyer’s market for greater fools
If there’s one thing we’ve learned from the financial crash, it’s that the efficient market hypothesis is utterly bogus. As a corollary, just as dead is the idea of buy-and-hold investing as a rational way to make money. Stock market results from Japan over the past two decades, and now America and Europe, are making […]
Investment gains may become harder to find, long or short.
I had an interesting discussion with some folks last night. The question was whether it is possible for all investments to go down in the short term if things get bad enough. One conclusion was that it’s a harder question to answer than you might think. Do you consider perceived value, or just market price? […]
Are long bear market rallies history?
I have no clue what’s going to happen on the market, but I’d just like to point out something that I haven’t seen anybody really talk about yet. For all the talk about comparing this present market to the bear market of the early 30s, there is one huge, obvious difference: information moves a lot […]
Gold will not necessarily go up during deflation
Many financial commentators, including the usually on-the-spotÂ Mish Shedlock, have been saying for quite some time that gold will go up in a deflationary environment. Their argument is that gold is money and money does well in deflation. I would be willing to wager that Mish has more understanding of economics while half asleep than I […]
A tax tip for people with online investments
If you use E*TRADE or Ameritrade, be warned that they don’t provide correct cost basis information to online tax software such as TurboTax. I tell you this after I just spent four hours fixing the useless data they provided. However, despite being completely useless, they are listed in TurboTax as providing investment tax information, so […]