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podrag (< 20)

Who is Dumb Enough to Pay for a Motley Fool Subscription?

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July 22, 2008 – Comments (6) | RELATED TICKERS: GLD , SLV , XES

'A word to the wise ain't necessary, it's the stupid ones who need the advice.' Bill Cosby

Oh how I laughed when I read the recent Motley Fool Blog 'Do You Still Own This Garbage?'

I was taken aback that anyone would hand over their hard-earned in order to be told to buy Citigroup or Bank of America. As DownWithInfidels said:

'There is no value in the valueless'.

Financials are deep underwater due to their extreme levels of leverage. No mention of that in the article, no mention of any of the fundametal reasons for their demise, no mention of credit expansion, the collapse of the bond market or Level 3 assets; just... kinda, 'well... ummm... so many people seem to be saying that financials aren't good... I'd better get some then...'. Who actually pays for that kind of advice? 

 My favourite section of the article comes at the end:

'Depression? Holy smokes! Kooks aside, this is the ugliest mood I've seen on Wall Street in 20 years of following the markets -- and that includes 2001, when at least a handful of Pollyannas were hopeful. Does this mean we've hit bottom, and it's smooth sailing from here? No. But it tells me that now is the time to buy stocks.'

Wow... this guy is telling me I'm a kook! Well I'm sorry for actually thinking about the fundametals of the businesses in which I invest.

And as for being a Pollyanna, well a significant economic event must occur. There is a dollar bubble which must be purged, the US is running massive deficits,- both of which are lined and fueling inflation worldwide - there is a multi-hundred-trillion-dollar derivatives 'Sword of Damecles' hanging over the financial system, world governments would sooner print money than face reailty and the world's supply of oil has plateued. If you study the last 5000 years of economic history, not just the last twenty, you will find that paper money always fails eventually due to the over-extension of government and greed, you will find that trade must be balanced and you will find that there is no way to stop a the bust resulting from the boom engineered through credit expansion. But no mention of that in the article either. It contains NO FUNDAMENTAL ANALYSIS WHATSOEVER of our current predicament, just flippant, feel-good comments from a twenty-year-old economic infant.

Now my advice is simple... and it's free. Buy gold, buy silver, buy gold miners, buy silver miners, buy oil service companies and ignore the ninkumpoops who tell you to 'invest' in failed institutions like Citigroup.

6 Comments – Post Your Own

#1) On July 22, 2008 at 11:19 AM, LordZ wrote:

HMM had I retorted in my own style TMF probably would have suspended me, wow is that what they're really recommending ?

buying financials ???

So did you pay to see that in a subscription ?

I was almost curious enough to try it out, but TMF is quick to censor and suspend my account, so I'll be damned if i'm gonna give them any money only to not be able to access my account.

I'll just stay in cash...

 

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#2) On July 22, 2008 at 2:18 PM, Gemini846 (82.65) wrote:

Lol. I would have quit reading after.. "Why I like Jim Cramer"

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#3) On July 22, 2008 at 7:42 PM, Imperial1964 (97.93) wrote:

I paid for a subscription recently, but at a discounted rate.  I'll tell you first-hand, the newsletters are unlike the sometimes-just-fluff articles you find on fool.com, but they still don't contain as much financial detail as I might like.

After only 2 newsletters I'm still undecided on whether they are of enough value to me to justify their cost.  David and Tom Gardner have a much different investment style than I do. 

I was hoping to just use their ideas to start my research because I have cash sitting around, but not enough time right now to do my own Due Dilligence on dozens of companies before narrowing it down to a few .  However, it isn't working as planned because at least 2/3 of their picks are outside my scope of competency (i.e. tech or growth or something else I don't understand).  Perhaps they can complement my skills.

I guess time will tell me if it's worth it.

By the way, the guys that write on fool.com aren't usually the analysts that do the newsletters.

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#4) On July 22, 2008 at 8:01 PM, Imperial1964 (97.93) wrote:

I forgot to add something.  You list the following problems:

-US dollar
-Deficits
-Derivatives
-Money printing/inflation
-Oil supply

Most of these problems have been around for decades.  Oil supply plateaued before, in the 70's.  I'm bearish too, but don't get so caught up in economic negatives that you miss out on the positives.

Another big drop or two and the market will reach a point where it is an attractive buy again, in my opinion, despite the headwinds.

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#5) On April 03, 2010 at 6:36 AM, ozzfan1317 (81.83) wrote:

Im not saying were surrounded by roses and puppies but any perma bear who wants to waste money in gold and silver be my guest. If I want an alternative to stocks I will look at real estate.

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#6) On May 14, 2010 at 5:16 AM, ralphmachio (23.67) wrote:

What, they offer a paid service? Sorry, I don't feel that knee jerk response to follow the herd. Way too lopsided on the bullish side for me. 

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