Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
In this lifetime, 99.5% of the people talking about equities have a vested interest in assets being bid higher. Being bullish is just what everyone does. It's the realm of normal. The bastion of the masses.
Usually it works. But just keep in mind that all the articles you are seeing about how cheap stocks are is hardly an – – umm – – objective viewpoint.
Just try to find the mass media warning you about how overpriced stocks were in early 2000 or mid-2007. That's a dry hole. And, to that point, I offer the value-priced CRM:
I tend to have strong feelings about things. There's not a lot of grey in my world. Things are very black or very white.
One of the many areas in which this is true is the movie Willie Wonka and the Chocolate Factory. This has been a favorite of mine for my entire life. I take great umbrage at the fact that Johnny Depp created a new version of this story – with the notable exception of one cool song. I am loyal to the 1971 version to the bitter end (sort of like how I think the Alastair Sims version of Christmas Carol is the only one worth watching).
Have you ever been in on a really hot fad like owning OP shorts, parachute pants, or even a wearer of those cool yellow Lance Armstrong wrist bracelets when you are shocked to learn that the biggest loser or dork is wearing them too? Suddenly the trinket or item isn't so cool huh? Remember that feeling, cause that is how I felt when I saw this video from Business Insider featuring one of the most famous investors that have a knack for making terrible calls at the worst of times. (Bear Stearns anyone?).
WARNING #1 I would agree with Jim as I noticed this week that the markup over spot for Silver American Eagles at one of the lowest mark up dealers (that I've bought a lot from) is now at $3.60 per ounce over spot! This actually changed from just one week ago when they were at $2.60 over spot. (mind you I'm talking purchases of more than 500 ounces at a time for this price). I thought it odd on their website because they said they would not sell Silver Eagles because they felt that the mark up was too high. I guess they felt the pressure. So, if there is this kind of pressure to buy at any price, we know that we should probably be looking for an exit. These kind of manias can go on longer than we think, but this is a BIG WARNING that people are buying at any cost.
So, we have warning #1 – we see dealers marking up the cost to buy AND there is still a crazy demand (say bubble with me).
WARNING #2 As I mentioned earlier today in the post about Fed Governor's comments about inflation, copper is looking sick and it will take down the rest of the commodities complex with it. Silver and gold will not be immune to a copper crash. Please review the post on inflation and Bullard's comments at MINISTRY OF DISINFORMATION – BULLARD SPEAKS.
WARNING #3 – (AND PROBABLY THE SCARIEST OF THEM ALL) Jim Cramer is actively commenting and favorable on a position in physical silver. This should cause you to call your precious metal dealer and arrange for UPS delivery to them right now.
There may be room to run on silver, but most of all, it seems to be getting a bit crowded. BE CAREFUL!
