Thanks for the quite deep analysis in this area. Now considering the gross profit margin ratio of about 80/8 there is a question in my mind as to the validity of the comparison. Are they comparing Apples to Oatmeal?
Then comparing sizes based on published revenue figures, there is a large size difference.
So the question becomes one of buying shares of a large company that is doing well or a much smaller company that is doing "OK", and it seems that there is a recommendation here in fairly plain sight.
In summary: "You can fool ALL of the people some of the time, and fool some of the people all of the time, and that is all you need". OK, a slight corruption of the famous statement, with my comment appended. And I am thinking that it is probably true, since it does not seem reasonable that all those people are dumb, but rather that they have been fooled again.
Another good ariticle here, VL. Disturbing but with good insight.
I do not "fear inflation", but I certainly dislike it intensely. Inflation damages the resources of all the folks who are not able to simply adjust their incomes upward, which is a class that I do not belong to. Inflation intentionally brings pain and suffering to those folks who have savings and assets that do not automaticly increase in price to adjust for inflation. The federal reserve banks normally seek to cause inflation for the benefit of their stock market friends, knowing very well that it hurts all others. Given that this has been the stated policy for many years, it can not be called an accidental by-product of doing what is best for the most people. So there is a disease in the fed that none will try to cure.
As matter of fact, the fed SHOULD HAVE increased and let the stock prices fall, which would have been only a fairly short term correction, really. The big change would be folks having to put their own money on the line, instead of borrowed money. Of course it has seemed to me that all speculation should be done with cash, not with credit. That would instantly reduce the wild rides that we see on occasion. And in a buying rush stampede it would avoid having the agents stopping the buying because of being afraid of getting stuck. They would get their cash with orders to buy and the cash-in-hand to do it.
Of course the earnigs estimates are going to keep rising. That is what CEOs are paid to do. And if the earnings do rise to the predicted numbers then a bonus may be delivered, if not, possibly not. The goal is to keep the shareholders happy so they buy more shares, while at the same time having the announcement not be so memorable that it is recalled if the profits do not reach the predicted value.
It probably would, although we are already seeing a few price increases in some commodity items. That was mentioned in one of the Thursday posts. Besides that, inflation is a lot more like a junk tree than a explosion. It takes a bit to start growing, but then it does grow more rapidly.
Certainly this post makes a lot of sense, and looks like a rational analysis of the situation. The bad news is that returning the US to a gold standard based monetary system will cause a great deal of pain to a whole lot of folks, far more painful than the treatment for hard drug addictions, and possibly not as survivable.
The other problem is that the priorities of the federal banking system as aimed at protecting their friends are becoming more obvious, and perhaps the payback time is coming. I wish for it to be non-violent, by some big miracle.
My hedge is a very marketable and wide skillset, which should be able to support me in the era where fiat cash is only worth it's weight in paper.
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Thanks for the quite deep analysis in this area. Now considering the gross profit margin ratio of about 80/8 there is a question in my mind as to the validity of the comparison. Are they comparing Apples to Oatmeal?
Then comparing sizes based on published revenue figures, there is a large size difference.
So the question becomes one of buying shares of a large company that is doing well or a much smaller company that is doing "OK", and it seems that there is a recommendation here in fairly plain sight.
The Intersection: Crypto And Wall Street This Week - Saturday, Feb. 13
Is it possible that Tesla needs a loss for a tax write-off? Or is it just a high-stakes gamble?
Most Reddit High Short-Interest Stocks Remain Above Their Pre-Squeeze Levels
Quite interesting, but what do you suppose this means? And why is it happening?
Morgan Stanley's $150BN Investment Arm May Soon Buy Bitcoin
Could this possibly be a "pump and dump" scam of epic proportions?
Investors Making The Same Mistakes?
In summary: "You can fool ALL of the people some of the time, and fool some of the people all of the time, and that is all you need". OK, a slight corruption of the famous statement, with my comment appended. And I am thinking that it is probably true, since it does not seem reasonable that all those people are dumb, but rather that they have been fooled again.
Inflation Worries
Another good ariticle here, VL. Disturbing but with good insight. I do not "fear inflation", but I certainly dislike it intensely. Inflation damages the resources of all the folks who are not able to simply adjust their incomes upward, which is a class that I do not belong to. Inflation intentionally brings pain and suffering to those folks who have savings and assets that do not automaticly increase in price to adjust for inflation. The federal reserve banks normally seek to cause inflation for the benefit of their stock market friends, knowing very well that it hurts all others. Given that this has been the stated policy for many years, it can not be called an accidental by-product of doing what is best for the most people. So there is a disease in the fed that none will try to cure.
Most-Shorted Stocks Are Excelling Beyond Reason
As matter of fact, the fed SHOULD HAVE increased and let the stock prices fall, which would have been only a fairly short term correction, really. The big change would be folks having to put their own money on the line, instead of borrowed money. Of course it has seemed to me that all speculation should be done with cash, not with credit. That would instantly reduce the wild rides that we see on occasion. And in a buying rush stampede it would avoid having the agents stopping the buying because of being afraid of getting stuck. They would get their cash with orders to buy and the cash-in-hand to do it.
Earnings Estimates Keep Going Up
Of course the earnigs estimates are going to keep rising. That is what CEOs are paid to do. And if the earnings do rise to the predicted numbers then a bonus may be delivered, if not, possibly not. The goal is to keep the shareholders happy so they buy more shares, while at the same time having the announcement not be so memorable that it is recalled if the profits do not reach the predicted value.
How Effective Are Government Stimulus Programs?
It probably would, although we are already seeing a few price increases in some commodity items. That was mentioned in one of the Thursday posts. Besides that, inflation is a lot more like a junk tree than a explosion. It takes a bit to start growing, but then it does grow more rapidly.
Crazy Days For Money
Certainly this post makes a lot of sense, and looks like a rational analysis of the situation. The bad news is that returning the US to a gold standard based monetary system will cause a great deal of pain to a whole lot of folks, far more painful than the treatment for hard drug addictions, and possibly not as survivable.
The other problem is that the priorities of the federal banking system as aimed at protecting their friends are becoming more obvious, and perhaps the payback time is coming. I wish for it to be non-violent, by some big miracle.
My hedge is a very marketable and wide skillset, which should be able to support me in the era where fiat cash is only worth it's weight in paper.