Toro's Running of the Bulls Market Blog

Back In

After selling my gold position two days ago, I have re-established my position.  I may be doing this totally wrong, but following Friday's sell-off, it appears gold wants to go higher.

We are in a melt-up in gold, and I believe one must be quick on the trigger if you want to play it here, because when it does sell off, you are not going to want to hang around.  It will be ugly.

Out of Stocks, Gold

I liquidated my gold position on Friday.  A large down day after strong upside momentum like the sell-off Friday is usually met with either consolidation or selling.  I will be watching gold closely and hope to re-establish my position in the not-too-distant future.

Should You Go to Law School? Probably Not.

For most people, it makes more sense economically to not go to law school.

[B]y undertaking some straight-forward analysis of the factors that come into play I hope to spur future generations of potential law school attendees to think about the question rationally, as one of making an investment. If your law school education were a stock or a bond, offered in the marketplace, would you buy it? Should you buy it? Why or why not

On Gold and Intrinsic Value

One argument one hears about why you should not invest in gold is because it has no intrinsic value, i.e. gold cannot be valued based on future cash flows.

And that is true.  Gold has no intrinsic value.

My retort is … so what?

We humans are funny beings.  We have innate preferences for things that may or may not be rational. 

South African Gold Mine Deathwatch

In my never-ending quest to pimp my book and make myself wealthier, as an owner of a lot of gold, I present to you yet another argument for the highly dubious yet incredibly self-serving thesis of Peak Gold - the death of the South African gold mining industry!

Peak Gold?

From The Telegraph

Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

On Insider Trading

From Cafe Hayek

If insider trading (on non-proprietary information) causes asset prices to reflect more accurately the true, long-run values of those assets, then insider trading should increase confidence in markets.

S&P 500 Operating Cash Flows Strong

One of the more amazing graphs I have seen is the graph of operating cash flows of the S&P 500.