Title: Financial/Investment News and Comments Source:
[None] URL Source:[None] Published:Feb 9, 2018 Author:To be determined Post Date:2018-02-09 07:55:59 by A K A Stone Keywords:None Views:12314 Comments:58
This is the place for financial talk. A place to share entrepreneuial ideas. To discuss investment strategies whether they be stocks, real estate or starting a new business. Or improving an existing business. Anything money and finance related is welcome to be shared right here.
Here's a list of things you could invest in. With all investments there are transaction costs. With all but one there are taxes. With many there are holding costs as well.
To be able to compare investments, a benchmark is needed.
I think that the yield on triple-tax-free municipal bonds is the best benchmark because it is a "safe" investment, with no taxes on it, so it's "pure".
Everything else can be compared to the TTF bonds to see how each stacks up.
This is a response to your post on another thread and more fitting for discussion on this new thread.
You posted to me:
I always figured if they were any good, they could hire a bunch of people to work directly for them and clean up on making money and forget about selling advice.
Exactly! I have the same view about gold hoarding. If these companies advertising for people to buy their gold because of the imminent meltdown of the economy and hyperinflation of the dollar really believed their own hype, why are they selling the gold in exchange for those soon-to-be-worthless dollars? They sure want dollars rather than holding onto their piles of gold, so THEY obviously don't believe what they say.
I was speaking about those who have ideas on investments and make their money selling those ideas instead of hiring a staff and primarily working those “great” ideas.
As far as the hawkers of precious metals are concerned, they are playing percentages. They are going for volume and percentage using the “60/40 Rule.”
They have to buy the metals to sell them. As the market fluctuates, they will actually at times sell some metals at below their cost. But with the volume and by playing the ups and downs like Swing Traders do.....they will over a period of time sell more metals higher than they do lower.
If they have a million dollars of gold, instead of holding it and hoping for a ten percent increase....they will turn it multiple times while making a percent off each sale. Therefore, as merchants....they will make more money buying and selling than buying and holding. Holding (hoarding) gold is for the individuals who wish to preserve assets. But as we discusses, undeveloped land with extremely low property taxes, like farm land, is a much better investment.
I always figured if they were any good, they could hire a bunch of people to work directly for them and clean up on making money and forget about selling advice.
In general I agree with that; what you want to watch for is "My magic system will make you rich if you follow it." That's a dead giveaway for a huckster; even if it's not a lie, there are many reasons his "magic" system won't work for you.
I did a lot of reading and research to figure out which trading style fit me best; if it wasn't for different styles there wouldn't be markets.
I learned the techniques I use from a Soviet-Union escapee, an M.D./Psychiatrist who developed trading methods based on the mass psychology of the markets.
He has written books and taught classes because he enjoys doing both in addition to making very good money trading his own accounts, and is a very enjoyable guy to spend time with. I get this; I enjoy teaching others as well, but won't join a union or be in harness, so I do it for fun on rare occasions.
An exception to the rule "If you can do it, do it. Don't waste time teaching it." He doesn't sell a "magic system", he sells understanding of what drives markets and provides the analysis tools he uses (most of which are freely available for any trading platform) - the system is up to you.
And I helped out a friend for a couple of years who was in the rare-coin and gold/silver bullion business. He had his own collection of graded rare coins, but in general you're right - turnover for the spread is how he made (a ton) of money and if you're in the business you don't hold bullion or bullion coins except for inventory to sell.
