The price of oil dropped over 6% today and is now sitting just below $70 per barrel. This is NOT the direction most investors thought oil was supposed to move. Remember 2008 when oil was over $140 per barrel?
This is another great example of how unpredictable any investment price can be, especially commodities like oil and gold. More →
Exactly what has always gone on with gold. It is a commodity. It is extremely volatile. It has always been like this!
As of right now, gold is down 3.46% today, but it is also way down from its all time high. It is too bad a lot of investors are surprised by the sharp drop in gold. Historically it is much riskier than the stock market. I imagine unsuspecting families have lost a lot of money thinking ...
More →
Gas prices have been bouncing around quite a bit in different parts of the country. It reminds me of some oil-related conversations I’ve seen during my time in the industry.
Early 2003
I was at a brokerage firm, very early in my career. At that time, worrying about the price of oil had never occurred to me. All I knew were some details about the handful of stocks I was supposed to sell. I remember ...
More →
Carbon pollution, national security, politics, an earthquake, a tsunami, and a radioactive metal all combine to remind us how unpredictable investments can be.
I am always amazed at how predictable most people think the financial markets should be, especially when these very same people freely admit the unpredictability of other events.
In particular, I think the Uranium trade that went bad on March 11, 2011 is a great example.
First, there were a lot of very reasonable, learned, logical arguments ...
More →
I’ll be blunt. Many people think gold is a great investment, but it is not the best way to hedge yourself against inflation. You might make money in gold, even a lot. You might lose money in gold. Either way, it isn’t a smart move if your objective is to protect your money against inflation.
The gold theory
Many financial “experts” are constantly trying to tie gold’s performance to inflation. The argument generally goes that fiat money can be ...
More →