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