QE3?

[Iron]

NASDAQ Composite:

5,048.62 on March 10, 2000.

2,669.24 on August 2, 2011.

There's a good argument against buy and hold.

Jeff

Not ULVR holders

[Euler]

I think you meant: -

"A good case for not buying hopelessly overvalued dot com stocks at the top of the market at bizarre valuations and holding them till they became worthless"

I actually shorted the index near its peaked when a friend got his web site listed and valued at £140m, you could tell peak was near.

[Iron]

I think you meant: -

"A good case for not buying hopelessly overvalued dot com stocks at the top of the market at bizarre valuations and holding them till they became worthless"

Touche! But I do think there are risks.

You might buy a stock today whose fundamentals look great. The company then appoints a CEO who decides to rip off the company's highest turnover customers, and the company goes through some hard times due to the resulting lost business. Your shares have slipped considerably in value by now. Do you sell and take a loss, or hope that things might improve?

Jeff

[Euler]

Only buy companies an idiot could run, as sooner or later one will!

I've very rarely bought long term into techs as the future is so uncertain. I say rarely as I am eyeing one up at the moment.

[Iron]

Some interesting figures re. QE2:

http://pragcap.com/quantitative-easing- ... -non-event

[superfrank]

Some interesting figures re. QE2:

http://pragcap.com/quantitative-easing- ... -non-event

Exactly... it allowed money to flow into equities because investors knew the FED was providing a backstop by providing free money to banks.

Interesting that bonds prices dropped during both periods of QE (because money was flowing out into riskier investments), and no surprise that commodities boomed in the same periods. The FED wanted neither of those things, but that's the law of unintended consequences that is invoked when you try to buck the market.

[Iron]

Double Dip Recession? More Like Depression Says Peter Schiff

http://finance.yahoo.com/blogs/breakout ... 43251.html

Jeff

[Iron]

Credit downgrade: UK 'vindicated' by S&P decision

http://www.bbc.co.uk/news/uk-politics-14430065

I agree, but crowing isn't productive and won't help the Special Relationship...

Jeff

[superfrank]

Credit downgrade: UK 'vindicated' by S&P decision

http://www.bbc.co.uk/news/uk-politics-14430065

I agree, but crowing isn't productive and won't help the Special Relationship...

Jeff

Politically it's very good news for the UK government, but the truth is that the UK is doing precious little to reduce address its debt problems either.

At least it makes Ed Balls look like the cabbage he is. It's a frightening thought, but imagine what would have happened to be UK's rating had Brown won the last election.

[Iron]

It's a frightening thought, but imagine what would have happened to be UK's rating had Brown won the last election.

It doesn't bear thinking about!

Putting Labour in charge of the UK economy is a bit like putting Homer Simpson in charge of a nuclear power plant: http://www.youtube.com/watch?v=V2fo0Q1dtX8

Jeff

[superfrank]

Are we entering the fear phase?

[Iron]

Are we entering the fear phase?

I'd say we've been in the 'fear' phase for a while, and we're rapidly approaching capitualation...

Jeff

[andyfuller]

Do you have a link for that chart? Would like to pass it to my brother.

[Iron]

http://trendfollowing.com/images/casey.gif

Jeff

Do you have a link for that chart? Would like to pass it to my brother.

[Iron]

An interesting article about the state of America - http://www.telegraph.co.uk/news/worldne ... r-Yes.html

IMHO, the best place for America to start saving money is in its military expenditure. America has enough nukes to blow up the world several times over, and it's not about to get invaded by Canada or Mexico.

If America had stuck to defending its borders over recent years, it would be better off fiancially, and wouldn't have quite so many extremist nutters plotting to attack it. Ditto Britain - Right now, we could really do with the money Blair spent on invading and occupying Iraq...

Jeff