2007

goforbroke said: "Hello everyone, I am a young man with a few thousand to gamble in the market. I think I would like short term trading because of the action. Which way will the wind blow in 2007, gold?, oil?, tech?. I am leaning toward oil since it has fallen back recently and the world economy seems to be booming. Good idea?"

Harry said: "[QUOTE=goforbroke]Hello everyone, I am a young man with a few thousand to gamble in the market. I think I would like short term trading because of the action. Which way will the wind blow in 2007, gold?, oil?, tech?. I am leaning toward oil since it has fallen back recently and the world economy seems to be booming. Good idea?[/QUOTE] Not gambling my friend... If you're careful and have watchful eye on the investment spectrum as a whole, your odds of winning (making money) are vastly better than a trip to Las Vegas. Silver dollars are not going to come flying out of your computer, but your portfolio can expoential grow as you watch. As a self-proclaimed bottom feeder oil is enticing. But the talk in the investment world has me strongly believing that we haven't even seen the bottom yet. Opec has cut production with little effect. And more cuts are hinted. But it is rather amusing that OPEC companies are cheating and selling to sponge $$$ on the present low commodity price. Rules to start... 1. Diversify 2. Buy Bargain 3. Assess losses...don't panic sell. Many prices return."

Mr. Gekko said: "[QUOTE=Harry]Not gambling my friend... If you're careful and have watchful eye on the investment spectrum as a whole, your odds of winning (making money) are vastly better than a trip to Las Vegas. Silver dollars are not going to come flying out of your computer, but your portfolio can expoential grow as you watch. As a self-proclaimed bottom feeder oil is enticing. But the talk in the investment world has me strongly believing that we haven't even seen the bottom yet. Opec has cut production with little effect. And more cuts are hinted. But it is rather amusing that OPEC companies are cheating and selling to sponge $$$ on the present low commodity price. Rules to start... 1. Diversify 2. Buy Bargain 3. Assess losses...don't panic sell. Many prices return.[/QUOTE] Great advice for a newbie Harry. :th_dblthumb2:"

Wangberg said: "[QUOTE=goforbroke]Hello everyone, I am a young man with a few thousand to gamble in the market. I think I would like short term trading because of the action. Which way will the wind blow in 2007, gold?, oil?, tech?. I am leaning toward oil since it has fallen back recently and the world economy seems to be booming. Good idea?[/QUOTE] isn't gold also at an all time low right now? From my understanding, gold is a great investment for the long-term. it will keep up with inflation and costs of living, so your money doesn't depreciate. It is however, better (and safer) than keeping it in a shoe box under the bed."

LongArm said: "[QUOTE=Wangberg]isn't gold also at an all time low right now?[/QUOTE] Not even close. Nearly the opposite. [QUOTE]From my understanding, gold is a great investment for the long-term. it will keep up with inflation and costs of living, so your money doesn't depreciate. It is however, better (and safer) than keeping it in a shoe box under the bed.[/QUOTE] Gold actually is not a very good long-term investment, in and of itself. Investors in gold can go through [I]very[/I] long stretches and not have a gain to show for it. In fact, if you had bought gold back in 1980, you [I]still[/I] wouldn't have a gain. Having said that, gold [I]is[/I] a great diversifier, so having a little bit in your portfolio can smooth out the ride a bit for you."

Wangberg said: "[QUOTE=LongArm]Not even close. Nearly the opposite. thank you for the correction! Gold actually is not a very good long-term investment, in and of itself. Investors in gold can go through [I]very[/I] long stretches and not have a gain to show for it. In fact, if you had bought gold back in 1980, you [I]still[/I] wouldn't have a gain. Having said that, gold [I]is[/I] a great diversifier, so having a little bit in your portfolio can smooth out the ride a bit for you.[/QUOTE] i don't understand the point in diversifying in something that will remain stagnant. does it not increase with the costs of living and inflation? i was always under the impression that it was better than keeping your money in a savings acct or under the bed. please correct me if i'm wrong!"

jhuntermartin said: "I like your advice especially number 2. But how does one find a bargain ? I look at PE Ratios and if they are less than 20 I seriously look at the stock. I have been paper trading for about six months now and am about ready to take the plunge."

LongArm said: "[QUOTE=Wangberg]i don't understand the point in diversifying in something that will remain stagnant. does it not increase with the costs of living and inflation? i was always under the impression that it was better than keeping your money in a savings acct or under the bed. please correct me if i'm wrong![/QUOTE] Gold does [I]tend[/I] to rise in value ahead of inflation, but not exactly like clockwork. And gold is very volatile. When the conditions aren't favorable for gold, it can tank quickly. Go to Google Images and search for "gold" and "prices." Check out the charts that come up and you'll get an idea of how volatile gold is and how it can behave over long periods. As for being "better than keeping your money in a savings account or under the bed" I think that refers to, for example, in the case of a catastrophe which causes the economy and/or stock market to collapse, or in the case of a plunging dollar, gold can be a safe haven from those things and may actually flourish. Gold can be valuable as a diversification tool, even if the long term returns may not be stellar. Gold has a very low correlation to stocks (probably a negative one), so when stocks go through a bad spell, gold may be doing just fine, thereby lessening the damage done to your overall portfolio at any given point in time. Think of it as insurance. It may cost you a little in overall returns long-term, but it can give risk-averse investors peace of mind short-term. And I should say that although gold has been a long-term dog of an investment, those who are smart enough to understand the conditions under which gold thrives can make good money on it."