It's about damn time.

Frood

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Hey, look pn the bright side. If you hate the dollar so much you can convert everything to Argentine Peso, the Venezuelan Bolivar, the Turkish Lira, or the Zimbabwe what ever the fuck. Of course all of those countries are either collapsing or collapsed long ago.



Meanwhile Russia is fucked and despite the lies of the Chinese Communist Party the Chinese economy is in deep doodoo. We are seeing tons of illegal aliens from China showing up at the southern border and like every other illegal aliens Biden just lets all of them in.

Every fiat is doodoo...
 

Seamajor

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Gold and Silver J.M. Bullion. Inherited a nice Silver collection, and add to it. The Copper, we’ve scrapped and recycled for many years. I buy Gold when I have extra cash. No need to sell any of it. Why not, the Chinese own much of the US currency. What’s that gonna be worth in the future? I buy the real thing delivered to my part time residence in Ca.
We can sell clean stripped copper wire in Oakland for $3.50 per pound. A good portion of this is salvaged for free from Construction sites. Selling a ton and a half is a joyous day, even after paying the transportation costs. Since we have the space , we’ve decided not to sell for a while and see what happens.
 
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Joe

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@Joe What you ramble on about is nonsense.

Shares of a company is ownership of the company's hard assets.

Now apply that same thought process to ownership of a company that provides goods and services. The hard assets will still be valuable and will still be there for the company to provide goods and services no matter what the value of the dollar does.
....and yet @The Prowler continued inflation will have an impact on the value of your and evreybody's stock portfolio. That's a big reason that the US Fed is currently at war with Inflation. ie - All the millions of Americans who are invested in the stock market with their 401k plans.

this guy, much more learned, experienced and richer than you points this out:



And this is how inflation affects the Average Jim or Jane:



Their stock portfolios go down in value Prowler:
 
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The Prowler

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I just listed to 1:39.

Do you hear what he said? He suggested owning common stocks rather than government bonds.

So he agrees with me.

I do not need to hear more. The guy is only stating the obvious.

@Joe You do not even understand the basics.
 

Joe

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I just listed to 1:39.

Do you hear what he said? He suggested owning common stocks rather than government bonds.
...perhaps.

But there is a lot of fear in the markets, particularly from the biggest and most reknowned investors @The Prowler.

I wouldn't be pouring too much into the stock market these days, especially when these key figures have predicted a possible sharp correction.



But unlike you they don't manage thousands of dollars worth, but billions of their investors' money. So they have a right to be scared, which they appear to be now Prowler. BTW, I know one guy who manages one of the largest investments funds in Canada. He's what many would call 'a high roller'. I was his driver and when the market had a bad day, his face would literally turn blue like he was dying.

Like @Seamajor I'm invested in gold, silver and cash at the moment & I will continue to increase my holdings. I suspect in the future I will be jumping into other precious metals and commodities.

There have been several warnings that the market could crash any day now.
Even if this prediction is wrong, at very best case scenario the market will continue to go sideways, just stagnating. But as they say, as inflation surges, the actual value of those stocks contines to decline Prowler.

Anyways in the scheme of things, you are really quite a small fry who doesn't understand the workings of the market.
 
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The Prowler

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I know one guy who manages one of the largest investments funds in Canada. He's what many would call 'a high roller'.

@Joe The term "high roller" is not used for someone who manages investment funds, you idiot.

I was his driver

@Joe You fuckin' peasant. You have no self respect and for good reason.

Like @Seamajor I'm invested in gold, silver and cash at the moment

@Joe Like him are you talking about tens of thousands of dollars too?

Hahaha!!!

But as they say, as inflation surges, the actual value of those stocks contines to decline Prowler.

That is incorrect. The stock price might go down temporarily, but the actual value increases on par with inflation.

During inflationary periods, the hard assets of a company do what? They increase in value in terms of a dollar amount. But that is not reflected in the financial statements, but it is reflected in reality.

Here are examples: Real estate that used to be worth X amount of dollars is now worth X + increased value due to inflation. Office equipment that used to be worth Y amount of dollars is now worth Y + increased value due to inflation. This holds true for all hard assets.

You should be getting the picture right now @Joe (but I doubt you are...).

So, what will happen in a properly run company is the Owner's Equity will be artificially low in the books (which will, surprise surprise, cause all your emotional investors to panic), but the people running the business will understand the need to continue to operate (as I will describe below) as if the O.E. is what it actually should be. What this will do is cause the Return-on-Equity to be artificially high. Again, because of the artificially low O.E. in the books, and profits being what they should be based on the inflated dollar, the Return-on-Equity will be higher than normally expected.

Due to inflation, a company's gross profit will shoot up. So will it's expenses. But the profit margin, as a percentage, will be the same if the company's CEO are other officers are worth their salt. So, again, consider that the income and the expenses have dollar amounts that reflect the current inflated value of the dollar, while the Owner's Equity in the books reflect the pre-inflation value of the dollar.

Now we are getting the unintelligent masses saying things like "You are price gouging!!!!" to companies like Loblaws in Canada and Cal-Maine Foods in the USA. But they have people working there (CEOs, CFOs) who are smart enough to know that they are operating at profit margins that make good business sense based on what I just described.

It takes a little bit of time, but the market corrects itself. Part of this is due to the fact that the book value of assets will slowly come in-line with their actual market value as old assets are depreciated and new assets are purchased.

I know this is way beyond your level of understanding, @Joe.

FYI, @Joe, in a couple weeks I will be investing about $100K (from a couple long term investments maturing and from some dividends are being paid to me) that I will be putting mainly into the stock market. What kinds of stocks, you might ask?

I already mentioned two.

Cal-Maine Foods has a PE ratio of 3.67 and a dividend yield of 8.44%

Loblaws has a PE ratio of 3.89 and a dividend yield of 5.81%

I am considering buying more Rio Tinto, but I do have a lot of it already (it is responsible for a good chunk of the aforementioned dividends that will be flowing into my trading accounts soon) and I expect the price to soften a bit by the fall/early winter, so we will see. I might time that purchase for later in the year.

@Joe Half of those fuckwits that you listen to just want to keep people in a state of panic so the volume of trading stays high. The have hundreds of limit orders on the go at a time and they make a percent here, a percent there several times a day to small investors who do not understand the game. @Joe You do not understand the game.

This is a Buyer's Market, @Joe. I gave you some decent tips. The really good ones I am keeping to myself.
 

Frood

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Sorry, Prowler... I have to strongly disagree with the premise that one can ride the ebb and flow of the stock markets while they're systematically being demolished.

It was always a Ponzi scheme....
 

Joe

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Cal-Maine Foods has a PE ratio of 3.67 and a dividend yield of 8.44%

Loblaws has a PE ratio of 3.89 and a dividend yield of 5.81%

This is a Buyer's Market, @Joe. I gave you some decent tips. The really good ones I am keeping to myself.

Prowler I don't have time to respond entirely to your long winded rant.

However I have to correct you on the figures you stated.

Loblaw's PE ration is 21.95 as of April 4, 2023:

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Cal-Maine's PE ration is 7.59:

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Instead of shitting garbage lies about PE ratios out of your asshole mouth, try to read the charts instead of what you want them to be @The Prowler

fuck are you stupid. You'd think I'd take financial advice from a liar like you?

If we relied upon your data and insights we'd all go broke, fool.

You and George W Bush both rely upon 'fuzzy math', Prowler:



anyways I thank President fuckhead and types like you for the state of our economy today Prowler.
 

Oerdin

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For what it is worth Tucker Carlson agrees with the OP. At least somewhat.

 

The Prowler

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Prowler I don't have time to respond entirely to your long winded rant.

@Joe That is okay. I knew you would not understand it.

Loblaw's PE ration is 21.95 as of April 4, 2023:

@Joe L-PB.TO

Sometimes the deals are with preferred stock, @Joe.

I thought you would know that.


Cal-Maine's PE ration is 7.59:

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Instead of shitting garbage lies about PE ratios out of your asshole mouth, try to read the charts instead of what you want them to be @The Prowler

That site that you use sucks ass, @Joe.

They show EPS of $7.49 here:
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The current EPS numbers are 15.51. You can see it here:
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The PE Ratio at close today was 3.57.

@Joe You use a site that does not have up-to-date earning figures? Hahahahaha!!!!

fuck are you stupid. You'd think I'd take financial advice from a liar like you?

@Joe, no, I think you would use a site that reports outdated information. You dumb asshole!!! Hahahaha!!!!

If we relied upon your data and insights we'd all go broke, fool.

@Joe The PE Ratio at close today was 3.57.

You gonna jump in?

You and George W Bush both rely upon 'fuzzy math', Prowler:

anyways I thank President fuckhead and types like you for the state of our economy today Prowler.

@Joe That is too bad that you did not save for a rainy day @Joe. But your mother just died and you should be getting a significant inheritance since I know she owned a house worth several million dollars in the Vancouver market. Your inheritance will bail you out of your bad personal financial management abilities, @Joe.

@Joe I gave you good information that should help you understand the true situation instead of the simplistic nonsense in the videos that you watch @Joe but you just focused on a couple of numbers that you thought were wrong and tried to attack me over them. And now what does it say @Joe when it turns out my numbers were right and what is actually wrong is your understanding and the online tools that you use?
 

senior penor

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Now we are getting the unintelligent masses saying things like "You are price gouging!!!!" to companies like Loblaws in Canada and Cal-Maine Foods in the USA. But they have people working there (CEOs, CFOs) who are smart enough to know that they are operating at profit margins that make good business sense based on what I just described.
To add to that, the people screaming price gouging completely forget that inflation is NOT the only metric that increases prices. businesses at all levels(farm, supplier, retailer) have all had their prices for fuel,heating, and electricity skyrocket in the past year, and they are going to pass that skyrocketing price onto the consumer, because they are a business and not a charity.
George Carlin was right about the average person
 

Oerdin

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Remember that less than 2.5% of all trade is conducted in Yuan or RMB. Yuan is not convertible (only RMB is) and the conversion price between Yuan and RMB is politically set and not set by markets so it is easily the most manipulated currency in the world. Once money is in Yuan it is very hard to get it out as conversion is not freely allowed by the Chinese Communist Party.

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No, the Yuan is not going to replace the dollar ever.
 

Oerdin

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Mostly institutions not individuals. Individuals in China are desperate for dollars (just like in Russia, Turkey, and most of the rest of the world) to escape the local inflation. Also the government backed banks can't simply dump those t-bills without losing most of their investment so it would be extremely self destructive and probably cause even worse financial impacts in China such as causing Chinese exports to become globally noncompetitive.

China kept buying t-bills to drive demand for dollars to lower exchange rates.
 

Seamajor

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Why I stay with metals. Compared to a year ago the dollar has gone down about 40% here
 

Oerdin

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Gold prices have been more or less flat since 2020 (though some ups and downs between). From 2010 to 2020 gold investors lost money. 2000 to 2011 was the last time gold had a good long term rally but even then you would have been better off with just an S&P500 index fund.
 

Seamajor

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With the political climate con the US, I wouldn’t put a penny in the market. Metals will always represent value.