Alfred
Posts: 6685
Joined: 9/28/2006 Status: offline
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quote:
ORIGINAL: LoBaron quote:
ORIGINAL: Alfred LoBaron, When I first saw the title of this thread, I was soooooooo excited. Then when I read it, I was sooooooo disappointed. Why the different reactions? My initial reaction was, great, at long last in stereotypical Teutonic efficiency someone is going to discuss on the forum what is really important; how one can take advantage of the opportunities presented by a bear stockmarket by averaging one's stock portfolio to a lower cost base. Once this was addressed I thought surely, with his attention to details, LoBaron will also be addressing the proper uses of one's personal M1 money supply to best advantage in a deflationary asset market. Surely that is a subject which post Stresseman's tenure of the finance ministry in the Weimar period, every Teuton would be taught about in school. Particularly important to discuss the second issue because whilst averaging lower one's cost base is almost always a good idea in an inflationary market, it isn't necessarily so in a deflationary market. One very much needs to then factor in opportunity cost plus if one is European, sovereign risk. Alas, "sigh", when opened, the thread merely dealt with the old rehashed topics. All well, nothing to add to JWE's succinct comments. But LoBaron, one last plea, any chance of you getting this initially very promising thread back to the really useful matters I mentioned. Alfred PS: I will not be providing any free investment advice and the above is provided only as general advice not to be relied upon by individual investors. I recommend those so inclined to discuss their investment situation with their licensed financial advisors. Alfred, I am very sorry that the thread title was misleading you to believe I was going to do an in deph analysis of the bear stockmarket and its loopholes. I was aware of the danger, but posted anyway. Out of malice, or simple neglectence, thats hard to reconstruct after all that happened. Still, in case you are not completely heartbroken and lost all interest in whats big and smells like, well, bear, I might tell you that what you dream of is in the works. I don´t know whether it will get finished in my lifetime though. Every time I´m 5th gear theres some new variable popping up out of nowhere. The latest findings indicated a high sensitivity of the bear stockmarket to the effects of global warming. Let me explain: The icebear market directly dependent on the ammount of and average distance between polar icecaps, decreasing as well as distance increasing as global average temperatures rise. Since the relation of the icebear market to the bearmarket is not clear as of yet and long time studies are awaited to get estimates on the relation between C0² percentage and bear population, I beg you to have a bit of patience. The next averaging out will average out the bear market. Ah, btw, I only googled what bear market actually means after typing the above, so in case you again are dissatisfied, please put it down to my incomplete grasp of the English language. Au contraire, mon frere, my interest has been piqued by your response. From the undoubtedly linked variables you have pointed out, I'm heartened that you will tie all this into the Kondratieff long term cycle. Personnally, I've never felt that Keynesian theory has given due regard to the Kondratieff long term cycle. Of course, if one is confident there is no sovereign risk, then one can expand from the restricted M1 money supply to the much more expansive M3 money supply. Once one starts down that path even M4 and M5 could enter into the debate. It would then be quite interesting to see how the consim school would react to the interaction of monetary theory and how AE plays out. Not to forget the disappearance of Kondratieff in this involved story. I've always maintained that the 1938 and 1939 Soviet -Japanese border clashes were the direct result of the Manchukuo authorities sending a rescue party to find out exactly where Stalin had extended to Kondratieff a long term Siberian dacha. Keep up the research, LoBaron. I can see a Nobel Economics prize awaits you 20 years down the track. Tie in the Co2 element, and you might also get a Nobel Science prize too. Alfred
< Message edited by Alfred -- 8/27/2011 7:02:18 AM >
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