Rule: “The truth is that right now stock markets are confident. It would appear people think that Yellen is going to do an absolutely great job, and I guess if the job involves a debasement of the currency, she will….
“Ben Graham once observed that in the very short-term markets are voting machines, and long-term they are weighing machines. Meaning, in the short-term they measure people’s perceptions and prejudice, and in the long-term they measure value.
Ben Graham famously said, ‘Money was made arbitraging between the way people vote and the way things are.’ And I think paying attention to the gold price at today’s price makes about as much sense as sense as paying attention to it at $1,900 did. The truth is that they are both short-term aberrations.
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