The Cult of the Vanguard Investor

[Scanner]

Okay, okay, thanks for bursting my bubble. . .maybe I'll put a "put" order or "stop" order on this ETF, since it trades like a stock.

[sweeps]

Gold at $1000. Oil at $104. Platinum at $2250. Silver above $20. I am very envious for not getting in on that huge run. But read my lips... This will not end well. The people piling in right now will be very very sorry.

[Scanner]

Well. . .sweeps. . .that's one way of looking at it - that this is a "bubble" that will burst.

The other way to look at it (and there's some legitimacy in both positions) is the gold has been artificially been kept low the last 3 decades and it's now just catching up (along with oil).

Some say silver has a ways to go. . .with fundamentals the way they are.

That being said, I forget what kind of "order" you can put in on a stock (put, call, stop???). . .I should probably do that, given that this could be a bubble.

I think part of the reason you see commodities taking off is because of the US going off the gold and silver standard. We used to be silver backed with our dollars.

Then, Nixon said, "We are Americans. . .our dollars are worth a lot because we are America."

To a large extent. . .it worked for awhile.

Now. . .America ain't doing so hot. . .we aren't the leaders we used to be (morally, economically, maybe even militarily since the name of the military game has changed). . .thus the reason for the dollar fall.

People want something for their money, whether it's oil, gold, silver.

And guess what? I think they are entitled. If I work for a $1.00. . .I want to be able to trade that in for an oz. of oil, or whatever.

So. . .I tend to not think it's a bubble, rather a correction that is overdue.

That being said, I don't deny a massive recession could thwart rises and causes drops.

[sweeps]

Scanner, the reason why I say this is a bubble is speculators are driving these prices up. Take oil for example. The real oil people who understand the fundamentals believe the price should be $70 -- $80 max -- and they are investing accordingly. It's the hedge funds and other speculators that have driven prices into the stratosphere. Remember what happened last time speculators piled into something believing there was no end in sight (hint: real estate).

[Scanner]

Sweeps,

Well. . .I just put in a stop order on it. . .I calculated the share price of 16% above what I bought it and put in the order. (share price: 157.00)

However, after I did it. . .I realized I may have spent $12.95 for nothing. I could have watched the thing like I do and just put it my head because the stop order is only good for 60 days. So. . .I'd have to put this order in 6x/year.

Thanks a lot! I'm out $13.00

LOL.

EDIT: This may be a superior reason to use ETF's in your portfolio though. . .you can't really put stops on mutual funds. . .if you are willing to spend $13.00 x 6 = $78.00/year for each mutual fund to lock in gains or prevent losses.

It may be money well spent - probably a topic for another thread but I don't know too many here who use ETF's.

[sweeps]

That's what you get for trying to be fancy. I would've just outright sold it, and then bought it again after it drops 30% or so.

[Scanner]

Yeah, but sweeps. . .what if it doesn't drop 30% and instead it goes up another 50%?

Then, I'm sitting on the sideline like you.

I mean, that is really advocating timing the market when you suggest that approach.

I frankly have no clue if it's going to drop 30% in the next year or so.

[sweeps]

Scanner I'm just playing with you. It's your money -- shoot for the moon.

[essyweb]

Just a quick word about Morningstar's ratings. It's not surprising to me that an S&P 500 index fund would garner only 3 out of 5. It is, after all, only tracking the market. In fact, I would be really surprised if it gets anything else.

[bjl584]

Just a quick word about Morningstar's ratings. It's not surprising to me that an S&P 500 index fund would garner only 3 out of 5. It is, after all, only tracking the market. In fact, I would be really surprised if it gets anything else.

Welcome to the forums.

Feel free to join in the discussion, but please refrain from digging up threads that are several years old. There are plenty of current topics to discuss.

[Mr Nice Guy]

Welcome to the forums.

Feel free to join in the discussion, but please refrain from digging up threads that are several years old. There are plenty of current topics to discuss.

I actually rather enjoyed reading this thread. It was a great discussion and I believe some of the info is still relevant today.

[bjl584]

I actually rather enjoyed reading this thread. It was a great discussion and I believe some of the info is still relevant today.

There are thousands of threads with relevant information in them. I often browse them for information or if I am looking for a particular piece of information. However, if I find something that I would like to comment on or something that I have additional questions about, then I will start a new thread.

The problem is that more often than not, the Poster that started the thread isn't around anymore. You will get a faster response if you put up a brand new thread. Also, it has been a practice of spammers recently to dig up old threads. It throws up a red flag to the veteran members, and often any comments or questions that someone posts on an old thread will be ignored.

[Scanner]

Wow. . .I saw this thread today and thought, "Gee, I think I started that years ago."

And I am still around, lol.

And I am still in silver, lol.

[Mr Nice Guy]

There are thousands of threads with relevant information in them. I often browse them for information or if I am looking for a particular piece of information. However, if I find something that I would like to comment on or something that I have additional questions about, then I will start a new thread.

The problem is that more often than not, the Poster that started the thread isn't around anymore. You will get a faster response if you put up a brand new thread. Also, it has been a practice of spammers recently to dig up old threads. It throws up a red flag to the veteran members, and often any comments or questions that someone posts on an old thread will be ignored.

Well apparently people aren't ignoring this one. And its not like this forum is that active (compared to other forums I post at anyway.) I just really don't see the big deal. If there was a lot of traffic, and people were constantly bringing up old threads, I could understand your lament towards it, but I just dont see that happening hardly at all here.

It was cool to see how people were viewing the funds and etfs described in this thread back in 2007. I was hoping it went on until 2009, to see reactions of the markets crashing.

But im not a veteran member, so what do I know