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<p>[QUOTE=&quot;medoraman, post: 1728552, member: 26302&quot;]These are your breadcrumbs, huh? What does a timeframe of QE have to do with anything? You are the one viewing the coincidence of QE(whatever) and stock appreciation as a cause/effect relationship. PROVE it is anything more than a coincidence. </p><p><br /></p><p>How am I a &quot;wallstreeter&quot; now all of the sudden? I have written repeatedly I have never worked in NY, for an investment bank, etc. I have a ton of initials behind my name, but that is because I like school and tests. Some are MBA, CPA, CMA, etc. Does pursuing knowledge now disqualify me from having an opinion? I would kinda think someone who has a background and professional experience using these markets might kind of be welcomed as an opinion. You know, as opposed to those who like to simply blindly parrot back what they have read, and have no intellectual basis on their own to form their own opinion like many do, (not saying you man, take it easy).</p><p><br /></p><p>I have EXPLAINED how the accountants do not offset contracts in their estimation of the value of derivatives, they count them in sum total. So, I could have a contract for silver, one short and one long, and this could spiral out of control until there are hundreds of contracts the accountants are counting but they all offset. In the end only ONE BUYER and ONE SELLER, but the accountants gross this up by a factor of 100. THIS is why I say the derivatives market are GROSSLY overinflated as to valuations. If you cannot see this point, or how on the whole its a zero sum game and the only risk is to firms being stupid and buying derivatives they do not understand, then I cannot say any further.</p><p><br /></p><p>As to Balance Sheets, the only ones I would worry about would be those with huge derivative exposures. I have already said I do not invest in them, and have warned against them. Old rule of thumb in Finance, NEVER invest in a company you do not understand how they make money. This rule kept me away from Enron, internet stocks, and a whole slew of other disasters. YES, there are risks, but in my view you are throwing away 99% of stocks because of 1%. </p><p><br /></p><p>Maybe I am just an optimist. I believe the economy will recover, the world will go back to normal, and as a result I wish to own shares in some successful firms. If the world does not go that way, I also own some PM and land. However, holding my entire portfolio that will only be successful if the whole world turns to crud seems like a depressing way to invest. So call me an optimist I guess. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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