Investors are getting wise to (and tired of) Wall Street’s games and are discovering the advantages of straight forward gold investment.
Posted by Adam King on February 16, 2011
Find safe haven in the gold market while Wall Street seeks greater fools.
February 16, 2011 – Investors are getting wise to (and tired of) Wall Street’s games and are discovering the advantages of straight forward gold investment. The Greater Fool Theory of investing – buying stocks not for their perceived worth but instead on the belief that a bigger fool awaits who will buy from you at an even higher price – has run its course. And it’s about time.
John Keynes first noted back in the 1930s that traders had little concern for the fundamental value of stocks. What mattered to them was only what retail investors perceived their value to be – or what they predicted their value would become. The stock market has never had a solid foundation in real value and that is why the market was so easily perverted into what it is today.
In Market Watch, Mark Hulbert, founder of Hulbert Financial Digest and a contrarian who has been tracking more than 160 financial newsletters since 1980, says the current bullish sentiment in the stock market “is now perilously close to dangerously high levels.” And “whenever in recent years short-term bullishness has risen to as high as it has become in recent days, the stock market soon encountered rough going.”
Hulbert notes that many of the analysts whose short-term forecasts are driving this bull market are none-the-less “bearish on the stock market’s intermediate and longer-term prospects.” The insiders know the market cannot sustain the current bull sentiment, and they are relying on individual investors to be the bigger fools, allowing them to cash out before the next crash.
Investors seeking security for their long-term investments without the risk inherent in Wall Street’s games need look no further than the gold market. The value of certified gold is clear, and is a universally accepted standard that has endured throughout history.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
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US Gold Market
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