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Message: Jason Zweig Article: Very Screwy!

Jason Zweig Article: Very Screwy!

posted on May 04, 2008 05:58PM

Team, Take a look at this article by Jason Zwieg.

http://www.jasonzweig.com/uploads/4....

I read this and I have to believe that either this guy is insane or I am insane. He quotes John Bogle out of context as saying..."The beauty of stocks and bonds is that they have an underlying intrinsic value." WHAT? I'm assuming he means the companies that those stocks represent, because a stock certificate is just a piece of paper with virtually no intrinsic value. If we were to be really precise in our thinking, we'd realize that regardless of what the stock certificate represents, it still has no intrinsic value. Intrinsic, by definition means that the worth is contained within the item itself. For example, corn has intrinsic value because you can eat it. An IOU to buy corn has no intrinsic value although it may still have value. Still it sounds good to say something like, "Stocks have intrinsic value." It confuses the average bear even though it is a blatant untruth. This guy's whole article is an example of doublespeak silliness. You should read it. If this is the best Money Magazine can do as far as putting forth intelligent discussion involving the existence or non existence of the continuing gold bull market goes, things must be really getting ready to take off. Bull

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