Yogesh Sarkar
Administrator
There is a thread going in the Bakar Section for investment, share market etc, but since it isn’t accessible to all the members, thought of starting a new thread.
The Investment Thread
- Thread starter Yogesh Sarkar
- Start date
Yogesh Sarkar
Administrator
Gold has built a bubble and it is supposed to get burst. I think America needs a change in Presidency only then organizations will start investing in their business. With passage of healthcare bill that is slated to take effect from 2013, US organizations have trillions of dollars of cash sitting on the sidelines. If implemented, health care bill will costs organizations substantial money and it will make US organizations less profitable. If there is change in the presidency and subsequent repeal of health care bill then stock market will jump substantially and gold will have a precipitious fall. If president Obama gets reelected, well then entire world becomes miserable. US becomes less competitive and loses its capitalistic and political might for ever. Americans will get lazier and will depend on government for everything. We take a step back towards pre-world war II misery.
As far as analysts are concerned, keep in mind that America is a conformance society. If you work in an organization, you have to go with the herd. Analysts always have to pick a sector and when nothing is doing well then they pick gold. It is in their interest to bring investor money in just to save their jobs. There is no better substitute to diversification because you cannot rely much on analysts forecasts. In fact, analysts make a lot of forecasts and only seem to remember the ones on which they were correct!
As far as analysts are concerned, keep in mind that America is a conformance society. If you work in an organization, you have to go with the herd. Analysts always have to pick a sector and when nothing is doing well then they pick gold. It is in their interest to bring investor money in just to save their jobs. There is no better substitute to diversification because you cannot rely much on analysts forecasts. In fact, analysts make a lot of forecasts and only seem to remember the ones on which they were correct!
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Yogesh Sarkar
Administrator
You have some valid points, and I agree Americans need to bring in a new President, preferably some strong Republican. Because at the moment they are just giving away the title of the most powerful nation to China, in turn opening themselves up for an even bigger downfall. Hopefully people will read history and see what happens to the former Superpowers and at least attempt to maintain their status, rather than just look at cutting spending, only to re-spend it again on the so called Job Creation bills.
Of course my knowledge is rather limited in this matter, and it is up to Americans to decide.
Coming back to the point, I am not quite sure if the gold is going to fall all that much. The way I see it, these so called analysts and majority of the trading firms make maximum profit when there is volatility in the market. So that they can trade a little more aggressively and regularly, to ensure they buy low and sell high, without even letting a single dollar leave their pocket!
So based on that, I guess Gold will crash, but only as much as it is necessary to hurt the retail investor, who would then be forced to cut his losses and sell it at a much lower price point, which in turn would then be picked up by these traders,
Of course my knowledge is rather limited in this matter, and it is up to Americans to decide.
Coming back to the point, I am not quite sure if the gold is going to fall all that much. The way I see it, these so called analysts and majority of the trading firms make maximum profit when there is volatility in the market. So that they can trade a little more aggressively and regularly, to ensure they buy low and sell high, without even letting a single dollar leave their pocket!
So based on that, I guess Gold will crash, but only as much as it is necessary to hurt the retail investor, who would then be forced to cut his losses and sell it at a much lower price point, which in turn would then be picked up by these traders,
MudgilSushil
DC Junkie ....
i don't if i am correct or not ..but Mr Obama is taking USA to what india was in 80's. on one side he is advocating open market and other side he is taking measures to protect US MNC's against competition ...in nutshell Obama Must go..
Yogesh Sarkar
Administrator
If he was protecting local business, then it would have been alright, at least for US. What he is doing is protecting the Unions and Union workers, which is the traditional constituency of Democrats.
What US actually needs to do is protect the local businesses, which means declaring China’s currency being artificially controlled (which it is), as this would allow them to impose the taxes on China’s product, thereby boosting demand for locally manufactured products.
What US actually needs to do is protect the local businesses, which means declaring China’s currency being artificially controlled (which it is), as this would allow them to impose the taxes on China’s product, thereby boosting demand for locally manufactured products.
Gold may not fall as much in near term. However, IF US gets a new president and repeals health care bill then most Americans will pull money out of gold and invest in stocks. That's when gold bubble will really burst! The uncertainty of health care cost is keeping US organizations sitting on cash.
You want to be in stocks BEFORE such a thing happens. Whether it happens or not is anyone's guess. If you like uncertainty, investing is a lot of fun
.
You want to be in stocks BEFORE such a thing happens. Whether it happens or not is anyone's guess. If you like uncertainty, investing is a lot of fun
.
Yogesh Sarkar
Administrator
True, its fun to see the market behave in the manner it is doing at the moment
US government also needs to control its spending. All this government provided goodies (healthcare, medicare etc.) is borrowed money from China. Americans are getting lazier, stupider and fatter; and want government to take care of them. Unions want government to dictate their pay hikes. Even Obama's war on Libya sucks! what kind of stupid war is that?
I think by local business you mean small business. Small business employs 70% of American workforce.
Yogesh Sarkar
Administrator
By local business I mean manufacturing units, irrespective of the size. When you buy majority of things bought from outside, even though you have the technical know-how and capability to produce them locally, you are killing your own strength in the long run. Trade between countries ought to be about things which can not be produced/developed/serviced locally, not just a blind race for the profitability of the corporations.