Category Archives: Psychology

Ritholtz on Gold

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By Biiwii

I linked Barry Ritholtz’s gold bug swipe along with other items in an Around the Web post. Anything linked (or republished from guests for that matter) on this site is to be taken as 100% their view, not mine. You, the reader are tasked with using your own brain to consider, discount or ignore any of it as you see fit.

What do I think of Ritholtz’s view on gold, personally? I think ole’ Barry is picking some easy, low hanging fruit to use up virtual ink over at Bloomberg, per his contract (real or implied). I mean really, gold did not react to Greece and he takes that as a negative for the metal?

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Hype in the “Community” is Always Punished

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By Biiwii

IKN has been pointing out the stupidity of some Apple Watch gold consumption hype and most recently, the non-flight to quality amidst Greece blah blah blah… He is at least as sensitive as I am to this stuff. More so, maybe.

While I have personally tried to tone down the criticism of the cartoons in the gold “community”, I find it difficult with one writer in particular leading the naive into the GDX (with its “drop dead gorgeous bull wedge”), into the Indian Wedding and China demand stories and as a topping on the cartoonish cake, the ‘US jobs will drive inflation so make like the smart money and BUY GOLD before the big institutions do!’ garbage.

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Misremembering

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Like a lot of people through the years, I had a fairly lousy time socially in the eighth grade. I had just moved to the Bay Area, and as a smart, gentle kid, I made an easy target for bullies. I didn’t go to a rough school at all, but still, there are going to be a few assholes anywhere you go, and my new town was no exception, and they had no trouble sniffing out the nice guy for verbal abuse. (One of the few kids who was consistently nice to me was pretty much the first girl I met out here who, incidentally, became my wife and mother of our children).

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The ABCs of Patience

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In the middle of December, six months ago, the Dow Jones Composite was at about 6225. Today, it closed at about 6225. So, for an entire half year, we have gone precisely nowhere.

This is not to say, of course, that there has been no movement in that half-year. Up, down, up, down, needlessly moving this way and that, and not really going anywhere. It’s been vexing, annoying, tiresome, nettlesome, and basically a big fat pain in the ass. Days like today exemplify it. The market just won’t break, either to the upside (which would be awful, of course) or the downside (which I’ve been waiting for since Millard Fillmore was in office).

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Is Gold Hated Enough?

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By Biiwii

goldAn article by Mark Hulbert jogged the title’s question into my mind:

This Bear Market in Gold Still Has too Many Bulls

With respect to the reasons for owning gold, I never flinch when taking a long-term value perspective. In the monetary and financial world gold is insurance and insurance is something you buy, but hope to never need. The value of insurance is in one of its definitions: “a thing providing protection against a possible eventuality”.

It is good news that this ‘thing’ has not been needed as modern policy making has worked to mostly desired effects, as asset markets have been pumped by inflationary policies that have not (yet) had a commensurate level of risk discovery.

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Irrational Real Estate

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I’ve done many, many posts about the insane real estate market here in the Bay Area. I’m not going to bore you with another “can you believe how much they want for this?” because, by now, I think you kind of get the point.

However, this week, in the venerable Palo Alto Weekly (which, as is typical for the newspapers around here, has a publishing frequency that has absolutely no correlation to its moniker) a local real estate agent, Xin Jiang (pronounced “Xin Jiang”) composed the following article, which I have helpfully highlighted for you: (more…)