Re: How high will gold go?
Quote:
Originally Posted by
xanfiles1
S&P 500 recycles 5-10 companies every year. On a MarketCap basis of 500 companies that is very very negligble. But, I'm not surprised that you focus on the 0.1% item and totally missing the 99.9% elephant. Consistent with your view of the world.
Once again, you are soooooo wrong about this. If you do a little research and make a list of the BIGGEST companies - lets say the Dow Ind 30 at creation - do you recognise any of the names? At the time they were the 30 biggest firms in the US. These were the blue chips. Sure, a lot of time has passed, but how many of them are still amongst the 30 biggest firms today?
Go on. Do the research. Take your time. I know the answer, as Melonie clearly does too.
How many?
Re: How high will gold go?
Quote:
Originally Posted by
StuartL
Once again, you are soooooo wrong about this. If you do a little research and make a list of the BIGGEST companies - lets say the Dow Ind 30 at creation - do you recognise any of the names? At the time they were the 30 biggest firms in the US. These were the blue chips. Sure, a lot of time has passed, but how many of them are still amongst the 30 biggest firms today?
Go on. Do the research. Take your time. I know the answer, as Melonie clearly does too.
How many?
When we are talking about S&P 500, why are you talking about Dow?. Dow Jones is the most useless measure of anything used by mainstream media.
Also, I seriously question your comprehension skills. You really have no clue about returns. Even for argument sake, lets say talk about DOW. At the most 1 company gets recycled out of DOW every year. Again DOW is not timing the market here, just on a random date.
30 years from now NONE of the companies may exist thats in DOW today.
But that has nothing to do with your returns. Really how clueless do you have to be to get this simple concept?. If you are Dollar Cost Averaging DOW, it doesn't matter that one of the company will get kicked out and another takes it place. For all practical purpose you are replacing one stock with another in a basket of 30 stocks, just like any other portfolio
DOW offers a 30 company diversification, but S&P is better because it offers 500 different ones.
The ultimate is Total International Index by Vanguard, which offers even more diversification. The only reason I talk about S&P & Not International Index is due to lack of historical data to throw in any figures.
Dow Jones is the most useless average of anything, except it follows some fuddy duddy companies. Any Index that doesn't have Google and Apple has to be useless.
Finally Do some research and get a clue. More importantly focus. We are talking about investing and returns. By pulling up trivia and obvious details like 'Companies die' isn't going to help anyone.
You invest in S&P 500 exactly for that reason; Companies die.
By investing in S&P 500, you are invested in the economy and not some whims of one particular company. Diversifcation and free lunch
Re: How high will gold go?
http://en.wikipedia.org/wiki/DJIA
To quote: "Today, the average consists of 30 of the largest and most widely held public companies in the United States."
Since the DJIA is the second longest US stock index, it seems reasonable enough to use it as an example. You are talking about the S&P 500. I am merely discussing index investing and the dropping of companies from a major index - which is where this started.
For ease, the above link also has a list of the current components. I presume that now you can see the firms listed, you'll be retracting your assertion that it is a 'useless index'. GM, GE, Microsoft, Coca-Cola, Walt Disney, Wal-Mart, Exxon, 3M, Citigroup and on and on... All 'fuddy duddy companies' for sure.
It might also be worth pointing out the the S&P is a weighted average which means that the biggest firms by market capitalisation have a larger influence over the index movements than smaller firms. Therefore, the biggest firms - most of which are in the DJIA 30 - are the ones that really make up the movements of the S&P.
The more I am sat here thinking about my response and typing, the more I realise just how wrong your thoughts really are. I am also realising that I have far better things to do than argue with you, so I'll be pulling out of yet another ridiculous thread that I have become embroiled in.
Does anyone here recall how nice and friendly the dollar den used to be? How we helped each other and there was barely one crossed post a month? What changed?
Re: How high will gold go?
I can see a bit of both arguements. The orginal question was how high will gold go? To address that, it all depends are you a trader, or a long term hold/value person. I have no idea where gold will go, higher quite possible. But, I do know this, had you bought gold in the last big run up, the good news is you are back to even, or close to it. Had you bought almost anything else, mutual fund, real estate, you should be much better off. So, if you are a trader, then it might be a reasonable thing to do if you see everything going badly, and continuing on that path for awhile. If you are a long term person, then I cannot see how gold is a value investment. The thought that you would take your gold bar down to Wal Mart and file off enough to pay for your purchase, is, ludicrous. I see nothing wrong with owning gold. But, as a general rule, own it to trade it, own it because you like to have some in your home.