Originally posted by OBE1
Anybody that proclaims dollar denominated stocks (S&P), a "store of value" has never studied long-term stock valuations adjusted for inflation (real
"Store of value"...sheesh. Good job OBE1, great graphic info, very timely considering Bernanke and crew have no intention of letting their hockey
stick approach to debasing the currency go limp anytime soon. Of course, they really can't, considering the dire alternatives, but that's another
Stocks. You bring up a great issue. How many realize that the Dow Jones today, bears no resemblance to what it was when it started? Or even 30
years ago? Etc. Almost all these companies eventually go out of business, for one reason or the other. Another way to put it, the value of their
stock goes to Zero. Store of value? Well, this would be no store of value in any classic sense, but as an index, at least one gets to avoid the
calamity of having all your eggs in one basket.
Also, they continually change out companies on these indexes, not just because the companies go out of business, but because if they failed to
"manage" in this fashion, people might catch on that it's just more smoke and mirrors. You can't legitimately compare index numbers over any
great length of time, thanks to these machinations.
Add to this, the "inflation" that is simultaneously hitting the dollar (or whatever fiat currency your stock in denominated in), and it's no wonder
so much financial info out there becomes meaningless very fast.
How is it that so few see through this monstrous con game? Everything is "managed" to the point that you are either a simple contrarian, or you
have your hands full with research, trying to get to the bottom of what's really going on. Of course they don't publish M3 anymore, not that it was
ever an honest reporting to begin with. Did anyone think that was a telling sign?
On top of all this, as if it wasn't enough already, if you look into any one of these large publicly held companies, it's all just fraud, on top of
more fraud. Even recent news is letting the regular Joe that the CEO's are on the take, big time, everywhere you look. The shareholder is laughed
at, as the big executives award themselves massive salaries, for poor performance. And then, you have the big CPA firms, aiding and abetting the
fraud, with "generally accepted" practices, that upon closer examination, are simply agreements to call spades diamonds, or whatever.
And then there are massive, off-shore operations. All these multi-nationals, that are supposedly under some scrutiny, since they are publicly traded
after all, all of them have things going on far beyond the reach of the governments that they supposedly must answer to. In fact, the very term
"off-shore" becomes ridiculous, because it is in fact the essence of what they have become. And to put a name on it, these multi-nationals are
basically not answerable to anyone.
And all this fraud and deceit, is the reality behind the investment we call "stocks". Surely, they are asking us to trust Satan himself. Why do so
many do it?
I think the answer is to be found in the vast "info wars" going on all around us. Not trying to invoke Alex Jones, but the term has a lot of merit.
When someone on this thread says something like the S&P is the "only" "store of value", my goodness, the propaganda simply works. No doubt about
Saying all this, I'm not necessarily "against" stocks, or bonds, or anything else (depends upon the particular investor's needs). Even the
despised "derivatives" have their place, and hedging strategies, etc. There are responsible parties who have in fact allowed these things to
address the particular needs of their operations. Of course, "responsible" is the operative word, and obviously, everything has been abused to the
max, but that's another issue.
I liked what you mentioned about reversing the investment ratio. I would put it this way: It is very imprudent to follow conventional advice when it
comes to these things. As you pointed out, the mantra is only "10%" to precious metals, "90%" to stocks?? Yeah, I can see how an analyst who
ignores the propaganda might easily conclude that the opposite ratio might be a better bet!
Of course, someone reading this will see an "extreme", and next thing you know, we'll hear about what we're smoking or some such silliness. But
really, perhaps people need
a reality check, with a few extreme examples.
I posted a reply earlier with quite a few quotes, from famous people, over a long period of time concerning gold. One in particular, says we are
entering an "unprecedented" period in history (due to universal irredeemable fiat currency).
Take heed. In some important ways, the world has never been here before, certainly never to this extent. But it's more than just a "quantitative"
thing. Because the situation is essentially "universal" today, we are now in uncharted waters.
Has there ever been a more risk-ridden era? Not just in the investment sphere, but generally so, as the many "fox-hole / gun & gubmint" posts seem
to confirm. What better time than to just be CONSERVATIVE. Take it easy. Stop "trusting" the propaganda, and gain the full perspective of
history, even as we admittedly enter a period like nothing the world has ever experienced before.