I gave examples of things that are not speculation, per se. Of course, this is not “speculation” in the sense of “action involving any sort of uncertainty regarding eventual outcomes” which characterizes all action.
There is a significant difference between buying something with the aim of selling it at a higher price later without performing improvements upon it (speculation) and other forms of business (production). Nothing wrong with the former, of course, but you just got to be honest about what it is.
Gold buying is not simply speculation because gold still has a monetary role, however indirect and subtle. So, buying gold is more like simple cash savings used to be before the Federal Reserve.
Yeah, that’s the zeitgeist with these SPDRs and index funds. Most new businesses fail within 3 years. Many of the businesses being traded on the market today will simply go bankrupt. The idea of “buying the market” is ridiculous. While it does provide protection from inflation, there are other, safer ways to shelter your money from inflation without having to throw it away in the world’s biggest casino, the NYSE.
None taken. I’d rather you feel insulted than go broke. I’ll repeat my reservations about entering the stock market. I seriously recommend you watch the movie Wall Street with Michael Douglas and Charlie Sheen. My favorite quote from the movie, “Ever wonder why fund managers can’t beat the S&P 500? 'Cause they’re sheep, and sheep get slaughtered.” Hate him all you want, but being Gordon Gekko is the only way to actually make money on Wall Street. If you’re not planning to be Gordon Gekko or (better yet) apprentice with someone who is, I recommend you find a safer way to make money.
Clayton -