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On this day in 1980, gold hit a then-record price of $850 per ounce. Gold dealers predicted that the price would hit $1,000 per ounce by July, and U.S. Secretary of the Treasury G. William Miller said, “At the moment, it doesn’t seem an appropriate time to sell our gold.” It was. By 1991 it was below $600 per ounce.
I remember buying a couple one Troy Ounce K-Rands about then at around $800 and selling them several later when gold was nearer to $400. (Paul Volker intervened.) Perhaps the wrong lesson. This time may be different.
Have played in the P/C area to varying degrees most of my 50+ year investing period. Currently have limited exposure (2-3% portfolio weight) inside a broadly diversified real assets fund and a CEF. Couple L/S funds are probably playing in the area as well - but whether long or short don't know.
Not to be overlooked in all this is the success / investor interest in momentum funds which chase whatever is hot. Those did not exist when I began investing in the 70s. These funds tend to run "hot & cold", lagging / outpacing markets, over roughly decade long stretches.
On this day in 2002, Global Crossing filed for bankruptcy. The telecommunications company had spent some $15 billion building fiber-optic networks in 27 countries since it was launched by former Drexel Burnham junk bond trader Gary Winnick in 1997.
On this day in 1886, Karl Benz received German patent DRP No. 37435 for his “motorwagen,” a frail and ungainly vehicle with three wheels and a wooden chassis. It was the world’s first automobile.
On this day in 2000, as the internet bubble neared its peak, 17 dot-com companies each spent $73,000 per second for network television ads during Super Bowl XXXIV. At least three went bankrupt in the following year.
Comments
Have played in the P/C area to varying degrees most of my 50+ year investing period. Currently have limited exposure (2-3% portfolio weight) inside a broadly diversified real assets fund and a CEF. Couple L/S funds are probably playing in the area as well - but whether long or short don't know.
Not to be overlooked in all this is the success / investor interest in momentum funds which chase whatever is hot. Those did not exist when I began investing in the 70s. These funds tend to run "hot & cold", lagging / outpacing markets, over roughly decade long stretches.
On this day in 2002, Global Crossing filed for bankruptcy.
The telecommunications company had spent some $15 billion building fiber-optic networks
in 27 countries since it was launched by former Drexel Burnham junk bond trader Gary Winnick in 1997.
On this day in 1886, Karl Benz received German patent DRP No. 37435 for his “motorwagen,”
a frail and ungainly vehicle with three wheels and a wooden chassis. It was the world’s first automobile.
On this day in 2000, as the internet bubble neared its peak, 17 dot-com companies
each spent $73,000 per second for network television ads during Super Bowl XXXIV.
At least three went bankrupt in the following year.