[-empyre-] entanglement

jeff pierce zentrader at live.ca
Sat Apr 4 13:08:47 EST 2009



What is a stock market really 'worth'? Five times earnings? Ten times earnings? One hundred times company earnings?


Ah, the age old quest for the Holy Grail of investing. This is why I use technical analysis solely in determining which stocks I buy and how long I hold onto them. Rarely do I ever look at fundamentals because ultimately that is a lagging indicator in a sea of forward looking statistics. If one could put an earnings tag on the value of the stock market then bubbles would never occur. The market at it's most basic sense is worth exactly what the last person standing will pay for it, an auction of sorts.




GM is worthless to me personally because of the "unknown" factor if it will even be a company six months from now. I have to have an edge when I trade, defined by Curtis Faith (One of the famous turtle traders) as "an exploitable statistical advantage based on market behaviour that is likely to recur in the future." Because we are in uncharted territory with GM I wouldn't even consider it. As with the financial stocks in the height of the "financial crisis" I never looked at them because of too much uncertainty. Yes it was likely they were all going to fall and fall hard, it was more like gambling and the moment you go down that path you cease to be a trader anymore.



And since you brought it up, I wanted to touch upon the very real fear of a "one world currency." The US is systematically destroying the value of the dollar. That is a fact, not up for debate. All you have to do is look at this chart (as far as my charting service goes back) 




to see the longer term trend of our currency. The problem is that all countries are printing money and devaluing their currency as well. All fiat currencies fail in the end and the end result will be the same this time. I believe they will start with regional currencies (much like the Euro) in the America's and Asia and then eventually move to a one world currency as the siren call of "globalization" will be to great to avoid. 


Who knows, if they think they could pull it off in a year or two they may try to make a push for a one world currency if all their "bells and whistles" actually destabilize the world's financial system instead of save it. That may just be the excuse they're looking for to pull off their slight of hand. I'm very much against all this government intervention (manipulation) and I think this is going to end very badly. There just may be one more hurrah as everyone thinks everything is going to be alright now that the G-20 is here to save the day.





As I was reading your story about that German town I thought, "wow, eutopia." Then I read the ending and realized there is no such thing.














> Date: Fri, 3 Apr 2009 08:20:30 -0700
> From: editor at intertheory.org
> To: empyre at lists.cofa.unsw.edu.au
> Subject: [-empyre-] entanglement
> welcome and thank you to all and our guests...
> As the Dow Jones Industrial Average languidly sells lower after touching 8000 yesterday, and after having rallied immensely from the recent lows of late 2008 and early 2009...I wonder, what is a stock market really 'worth'? Five times earnings? Ten times earnings? One hundred times company earnings?
> It's a bit like asking: What is Picasso's "Guernica" worth? Or Hirst's "For the Love of God"? Remarkably, valuation is a creative enterprise, no? Another negative US employment report this morning, over 600,000 jobs lost...highlighting another of our 'creations'...What is the extent of our entanglement with such 'creativity'?
> Nick
> Nicholas Ruiz III, Ph.D Editor, Kritikos http://intertheory.org
> _______________________________________________
> empyre forum
> empyre at lists.cofa.unsw.edu.au
> http://www.subtle.net/empyre

Share photos with friends on Windows Live Messenger
-------------- next part --------------
An HTML attachment was scrubbed...
URL: https://mail.cofa.unsw.edu.au/pipermail/empyre/attachments/20090403/ebb4694a/attachment.html 

More information about the empyre mailing list