Money Tip-toeing back into the Market?

eazyb81 · 10-10-2008, 03:12 PM

What's fascinating is that gold actually fell off a cliff today. In an equity market like we had this week, that would normally be the flight to safety, but it's not happening. It's just a totally irrational market right now that is throwing fundamentals out the window. There are companies that are literally trading at 1x earnings.

I can't wait to read a book about this time period in 10 years or so after this has passed.

Amnorix · 10-10-2008, 03:13 PM

Quote:

Originally Posted by eazyb81

What's fascinating is that gold actually fell off a cliff today. In an equity market like we had this week, that would normally be the flight to safety, but it's not happening. It's just a totally irrational market right now that is throwing fundamentals out the window. There are companies that are literally trading at 1x earnings.

I just heard that BP is at 5x earnings. Of course, earnings probably won't be anywhere near as high going forward as they were the last year or so, but still.

Stewie · 10-10-2008, 03:19 PM

Quote:

Originally Posted by eazyb81

What's fascinating is that gold actually fell off a cliff today. In an equity market like we had this week, that would normally be the flight to safety, but it's not happening. It's just a totally irrational market right now that is throwing fundamentals out the window. There are companies that are literally trading at 1x earnings.

I can't wait to read a book about this time period in 10 years or so after this has passed.

That's the "paper" gold market where no physical gold is exchanged just ownership of stuff in vaults. The physical gold market is insane right now. The U.S. Mint along with other mints worldwide have stopped producing coins because of high demand. If you go out and try to by a 1 oz. coin you'll pay WAY north of $1000 if you can find any gold at all. The physical market could care less about the "spot" price. The spot market will eventually follow the physical market because it has to. These markets are totally nuts.

2bikemike · 10-10-2008, 03:36 PM

Fortunately for me I liquidated some of my assets before the chit really hit the fan. I am sorting through now trying to develop my plan for jumping back in. I think we have a little more pain to go through yet. I think we are going to see saw around the bottom for a little while. Right now we are still falling.

Fat Elvis · 10-10-2008, 11:00 PM

Quote:

Originally Posted by Stewie

That's the "paper" gold market where no physical gold is exchanged just ownership of stuff in vaults. The physical gold market is insane right now. The U.S. Mint along with other mints worldwide have stopped producing coins because of high demand. If you go out and try to by a 1 oz. coin you'll pay WAY north of $1000 if you can find any gold at all. The physical market could care less about the "spot" price. The spot market will eventually follow the physical market because it has to. These markets are totally nuts.

Margin calls. The rapid and ongoing descent of the market is resulting in a lot of huge margin calls that need to be met and people/institutions/hedge funds are just doing wholesale dumping of anything and everything they have whether it is equitities or commoditites.

Mojo Rising · 10-11-2008, 01:33 AM

There is no way to call a bottom as much that is happening is emotional at this time.

Spend the time to develop a financial plan and stick with it through good and bad markets.

Control 2 emotions... greed and fear.

Don't buy at the top and don't sell at the bottom.

Stewie · 10-11-2008, 06:12 AM

Quote:

Originally Posted by Fat Elvis

Margin calls. The rapid and ongoing descent of the market is resulting in a lot of huge margin calls that need to be met and people/institutions/hedge funds are just doing wholesale dumping of anything and everything they have whether it is equitities or commoditites.

That's part of it. The gold market is tiny compared to other markets so any player making a big move will affect the price up/down, but then it usually springs back from an overbought or oversold position. That's why there have been $80 moves up and down in a matter of an hour or two in the past month.

Ring Ring
Hello?
Margin calling!
I'm ****ed!

10-10-2008, 03:12 PM	#1
eazyb81 The Illuminati Join Date: Oct 2004 Location: the road less traveled Casino cash: $9984900	What's fascinating is that gold actually fell off a cliff today. In an equity market like we had this week, that would normally be the flight to safety, but it's not happening. It's just a totally irrational market right now that is throwing fundamentals out the window. There are companies that are literally trading at 1x earnings. I can't wait to read a book about this time period in 10 years or so after this has passed.
Posts: 12,033

10-10-2008, 03:36 PM	#4
2bikemike Born to Ride Join Date: Sep 2002 Location: NWA Casino cash: $-1214623	Fortunately for me I liquidated some of my assets before the chit really hit the fan. I am sorting through now trying to develop my plan for jumping back in. I think we have a little more pain to go through yet. I think we are going to see saw around the bottom for a little while. Right now we are still falling.
Posts: 16,422

10-11-2008, 01:33 AM	#6
Mojo Rising Veteran Join Date: Jul 2001 Location: OC Casino cash: $10009560	There is no way to call a bottom as much that is happening is emotional at this time. Spend the time to develop a financial plan and stick with it through good and bad markets. Control 2 emotions... greed and fear. Don't buy at the top and don't sell at the bottom.
Posts: 1,792