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23 comments on An unsteady start to the year

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Gets IT on January 16, 2006 - 6:34pm Permalink | Subthread | Parent | Comments top
Straight lines don't work in making maximum financial returns. You gotta' follow the curves and buy when its low and sell when its high and make the appropriate correlations along the way. I'll bet you're bank balance is probably "pretty much the same as it was 7 years ago" too, isn't it? Now ratio by the price of gold then and now. See where linear thinking got you?
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Nate Hagens on January 16, 2006 - 7:59pm Permalink | Subthread | Parent | Comments top
Gets.

I have long since abandoned the strategy of buying low and selling high - I learned years ago to buy high and sell higher, and in fact when I ran my hedge fund that was precisely the core strategy. The market undervalues 3-5 standard deviation events so going with the trend, long or short, and pyramiding makes one alot of money ($ or your precious Euros).

Gold has gone up from $300 to $565 (up$8 tonight) in the past 7 years -roughly up 80%. <img=http://www.kitco.com/LFgif/au00-04.gif>

Oil over the same period is up 500%. Energy is what makes the world work. Without energy we have nothing. As long as the economic system is intact, which I expect for sometime, oil will continue to go up more than gold. Only when currencies are worthless will gold have any actual true value, as a barter mechanism. Until that time, I will hold a small % of my assets in Krugerands and Maple Leafs as insurance against that type of world but mostly be invested in oil, gas, alternative energy, etc.

Lest this become a 'whose currency is longest thread' that will annoy TOD readers, I will defer to your trading wisdom and desist.

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