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Anna
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Anna
@Anna333545
Believe in yourself and anything you want is possible.
Katılım Haziran 2013
490 Takip Edilen1.5K Takipçiler
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@CarmicalMike @BlackEdgeFund You probably haven't enabled the private messaging function. I sent you a private message, but you didn't see it. You can enable the private messaging function by clicking the small envelope icon in the lower right corner of your profile and entering a four-digit password.
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@Anna333545 @BlackEdgeFund Cool Anna where in Europe are you located? What country?
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A caller asks Dave Ramsey what to do with required minimum distributions from his 401k that he doesn't need. His gut tells him to invest in gold.
Dave's response is immediate and emphatic:
"No, no, no, no, we don't put anything in gold."
His reasoning starts with the math.
"Gold is much more volatile. If you look at the price of gold on a chart, it's way up and way down, much more than the stock market is. It is a lot riskier, and it does not yield a good net return; the average annual rate of return on gold sucks."
But Dave doesn't stop at performance.
He wants to explain "why" gold underperforms. And this is where the conversation gets interesting.
"Gold is a commodity; it's a rock that is yellow."
He explains that commodities, whether barrels of oil, precious metals, or corn, are all traded 100% based on people's perception of shortage. If the perception is that there's too much of it, the price goes down.
Compare that to a real investment:
"An investment that creates revenue is a company that's running and making a profit, like Home Depot, Microsoft, or Apple. Their stock goes up because they are creating revenue. Gold, corn, and oil do not create revenue; they only trade based on scarcity and the psychology of the marketplace, greed and fear."
In other words, when gold prices rise, the gold itself hasn't become more valuable.
Dave puts it plainly:
"If a whole bunch of people rush towards gold, it creates a shortage and the price goes up, but the gold did not become more valuable, just more people were chasing fewer bars."
He extends the logic to income-producing real estate, which is priced based on the income it creates, not because it's a "golden rock." And he takes a swipe at diamonds while he's at it: "Diamonds are not necessarily a girl's best friend; that is a marketing slogan. Diamonds do not go up in value; there is no actual investment return on them."
Then Dave addresses the headlines designed to scare people into gold, stories about the dollar being threatened by China, Russia, or Brazil:
"You can't run to gold because there is nothing magical about it."
His geopolitical take is sharp:
"While Russia and Brazil are large landmasses, they are not large economies. Texas has a larger gross domestic production than Brazil; Texas is a bigger economy. These countries are going to have to do business with the '800-pound gorilla,' and we do business in dollars, so they are still going to be at our mercy."
His advice to the caller?
Pull the required distribution out of the 401k as the law demands, and move it into good mutual funds in the process.
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@CarmicalMike @BlackEdgeFund I strongly agree with this direction! AI and chips are long-term themes, and lithium, a key raw material, is indeed worth waiting for at the bottom of the cycle. It seems we are quite aligned in our views on the opportunities ahead.
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@Anna333545 @BlackEdgeFund Tech- AI and computer chips. Raw materials - Lithium
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@CarmicalMike @BlackEdgeFund Which sectors do you plan to focus on next?
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@BlackEdgeFund Just put a portion of your money in gold. I bought 1oz coins last year for $2500 each and sold when they doubled a year later. Sitting on the cash now in a high yield money market account. Waiting for a dip in the market to buy stock.
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@CarmicalMike @BlackEdgeFund Wow, that's impressive! Making double your money buying gold last year was fantastic, and taking profits at the peak was such a smart move. Now you're waiting for a market dip to add to your position – that's a very steady strategy. 👍
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@CarmicalMike Indeed, these companies basically survive by making empty promises and lack the ability to generate revenue. In the end, they will most likely raise money through share issuance, purely scamming retail investors.
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@MindaugasDargis @AdityaInvests90 Haha, this guy is hilarious! The doomsday panic mode has been activated. "Stock market down 0.05% → Tomorrow is the end of the world!"
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@AdityaInvests90 This is funny... guy is showing 0.05% losses and telling everyone... we are deep in the red...
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