[eriknben10]

Hey MMax,

Why Is George Soros Selling So Much Stock And Buying So Much Gold?


I been thinking about your post a bit this morning and about why anyone with extreem wealth would sell investments to turn it into gold.

One possible explanation could be this...


http://news.yahoo.com/health-care-laws- ... 30388.html

If you think about it they are unloading the wealth into a place where the government doesn't make a dime off of that portion of there wealth. There already so filthy rich they would never need to do anything with the gold except let it sit there. It is essentially a tax shelter.

[Phaedrus]

Soros is playing the market, not hedging against some disastrous economic future. This is Soros 2.5 years ago as he doubled his position in gold as well as buying into a gold mining company

During the World Economic Forum in Davos in late January, Mr Soros said: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

When the gold market peaks, and it will, Soros and other major holders will sell. The small fry investors who bought out of paranoia will be left with major losses.

[Phaedrus]

The market report that MM's article relies on is here.
http://www.ici.org/research/stats/flows/flows_08_22_12

Note that while equities have a net outflow, the inflow to bond funds more than makes up for that. If we were talking imminent financial collapse, why would people invest in bond funds?

By the way, international equity funds have experienced net inflows particularly with emerging markets.

[eriknben10]

Ya know my brother is a small time day trader, only a few million traded daily and he said the same thing...imagine that

[Stinky Pete]

The conventional logic is to invest in bonds if you're expecting things to be bad. Bonds are less risky and more predictable. Personally, I think things are going to turn positive soon, both here and internationally, so I have a lot of money in U.S., Emerging markets, and general international bond index funds.

[Stinky Pete]

If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing. Those that are "connected" have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen.

There have been sooooo many studies done which show the 'experts' aren't any more reliable than monkeys throwing darts. They're all just guessing. Sometimes they guess right a few times in a row, and people think they're geniuses.

[Stinky Pete]

I agree with ya...but I'm not sure "how soon". What are you basing your opinion on that the market will get better quickly?

MM

I'd like to say I have some solid basis for my opinion. Really it's just based on my belief that things are cyclical, and after 10 crappy years, something's gotta give sooner or later. We've made it through some really terrible events, and Europe's mess will eventually resolve itself.

[eriknben10]

I'd like to think things are going to change for the better as well but my gut feeling is we are looking at the very least 3-5 more years of a slumpish economy unless the government releases another big thing like the world wide web. I myself have 80% my money invested in rental property and have been very lucky to have great long term tennants and the ability/tools to do all the maintanence myself.

[Wrench97]

I'm really surprised all that typing and MM forgot the link to his Gold for Sale Web site I know I taught him better then that.....................