Archive for August, 2006
Gold & silver, or precious metals (PM) as they are referred to in the investing community, are a kind of commodity. Physical commodity investing is not usually done as a long term investment. This is because a commodity has no value besides its intrinsic value. It will never increase in quantity nor quality as an investment or product, unlike stock ownership in a company where the corporate earnings can potentially increase with time.
So why am I investing in such stupid and “boring” investments? Because, on an inflation-adjusted basis, gold needs to exceed $2090 in 2006 dollar to overcome its 1980 peak.
The rapidly rising U.S. trade deficit with China has caused some US entrepreneurial homebuilders to “think outside the box”. Or rather – think “using the box”.
There are about as many variations on the moving average as there are investors using them. While it’s generally understood that no one configuration is going to be the holy grail of predicting stock prices, each investor has their own baselines or favorites that they come back to.
Below, I’ll talk a little bit about how I’ve been using MAs lately. Then I’ll look at some of the MA setups which seem popular online today and make some observations based on them.
Sherman, set the wayback machine to the winter of 1999! This was a time when everyone thought they were a financial genius. You couldn’t loose, or so we thought. I was a conservative investor even in those days but a co-worker was talking about a great investment tip he heard from a friend who had heard it from their doctor. That in it self should have been a sign.
