And now for something completely different.....
In response to CP:
Chaff your one of those people that really doesnt know to much about the world and how it really works.
…………I appreciate you taking the time to enlighten me.
I'll try to keep this simple for you.
…………thanks, I appreciate it. Whenever you try to explain something complicated, you’re hard to follow.
If your a farmer and you "hedge" yourself say on a corn crop by locking a large portion at 2$ because hey its a good price and you think your going to make money.But the price jumps to 4$,and now guess what all your costs start to rise fertilizer,fuel,chemical,land values,etc,etc..
…….…That quickly? Because I was short corn? Those bastards! They must’ve known!
……….(Sorry. That was sarcasm. I usually hate sarcasm. I’ll do better.)
Now instead of a profit your in a loss position.But guess what your neighbour who went long and made money now has money for next years crop and that land beside you that came up for sale.Your competition is stronger and you are weaker and someday he will be buying you out.
…………My neighbour went long once. He went broke cuz he was long and wrong. He drives a truck in the city now and I own his farm. And his wife works for me. It’s a real nice arrangement, if you know what I mean….
…………(Dammit. More sarcasm. Please forgive me – I just can’t help myself.)
Now tell me how hedging doesnt apply to farming.
…………Now why would I go and do that? Re-read my post; I said “Applying the concept of underwater hedge books to a farm situation is simply misguided.” But I don’t get where you’re coming from. You gave an example showing how a hedge becomes an albatross for a farmer and then you said hedging applies to farming? (I thought you were going to keep this simple….)
As far as risk management its a matter of perspective i guess.
………..Correct. One in a row. There’s hope for you yet, grasshopper.
Do you consider a government savings bond paying 5% a solid investment?
………..its a matter of perspective i guess (and timing). And it would also depend on what else you have in your portfolio. You know, your portfolio’s beta coefficient.
But if i told you inflation is running around 8% would you still think its solid?(which it is)
……….Thanks for giving me your opinion on this one. I look for these nuggets.
The aussies i was refering to were the ones who got trapped in canola contracts.Theres a thread further down about the subject.
……….Sorry. I missed that one.
We'll see how the cwb performs this year.
……….Imagine me as Horatio Caine from CSI Miami with my head tilted sideways when I say “Yes, we will, won’t we”.
As far as when a person wants to sell thats their business.
……….Now you’re getting it. But more specifically, it depends on their business. (I know others have tried to tell you this before, but I thought I’d give it a shot anyway.)
I did say selling into a rhino horn was a good idea.
……….Sorry I missed that one.
……….Hope this clarifies a few things.
…………Good trading,
…………CM
P.S.-you dont really think ive ever posted what my main investment portfolio is made of?5000 hours of thought and consideration to a bunch of people that hate me.LOL
…………No one here hates you CP. We just don’t respond well to your unique style of leadership. All I know about what you’ve said about your investment portfolio is this – if I were as successful as you make yourself out to be, the first thing I’d do is tell my wife to quit her job and do something she really liked, like stay at home with the kids. Also, 5000 hours over 3 and a half years works out to 4 hours a day – every single day. I sincerely hope its been worth it.
In response to CP:
Chaff your one of those people that really doesnt know to much about the world and how it really works.
…………I appreciate you taking the time to enlighten me.
I'll try to keep this simple for you.
…………thanks, I appreciate it. Whenever you try to explain something complicated, you’re hard to follow.
If your a farmer and you "hedge" yourself say on a corn crop by locking a large portion at 2$ because hey its a good price and you think your going to make money.But the price jumps to 4$,and now guess what all your costs start to rise fertilizer,fuel,chemical,land values,etc,etc..
…….…That quickly? Because I was short corn? Those bastards! They must’ve known!
……….(Sorry. That was sarcasm. I usually hate sarcasm. I’ll do better.)
Now instead of a profit your in a loss position.But guess what your neighbour who went long and made money now has money for next years crop and that land beside you that came up for sale.Your competition is stronger and you are weaker and someday he will be buying you out.
…………My neighbour went long once. He went broke cuz he was long and wrong. He drives a truck in the city now and I own his farm. And his wife works for me. It’s a real nice arrangement, if you know what I mean….
…………(Dammit. More sarcasm. Please forgive me – I just can’t help myself.)
Now tell me how hedging doesnt apply to farming.
…………Now why would I go and do that? Re-read my post; I said “Applying the concept of underwater hedge books to a farm situation is simply misguided.” But I don’t get where you’re coming from. You gave an example showing how a hedge becomes an albatross for a farmer and then you said hedging applies to farming? (I thought you were going to keep this simple….)
As far as risk management its a matter of perspective i guess.
………..Correct. One in a row. There’s hope for you yet, grasshopper.
Do you consider a government savings bond paying 5% a solid investment?
………..its a matter of perspective i guess (and timing). And it would also depend on what else you have in your portfolio. You know, your portfolio’s beta coefficient.
But if i told you inflation is running around 8% would you still think its solid?(which it is)
……….Thanks for giving me your opinion on this one. I look for these nuggets.
The aussies i was refering to were the ones who got trapped in canola contracts.Theres a thread further down about the subject.
……….Sorry. I missed that one.
We'll see how the cwb performs this year.
……….Imagine me as Horatio Caine from CSI Miami with my head tilted sideways when I say “Yes, we will, won’t we”.
As far as when a person wants to sell thats their business.
……….Now you’re getting it. But more specifically, it depends on their business. (I know others have tried to tell you this before, but I thought I’d give it a shot anyway.)
I did say selling into a rhino horn was a good idea.
……….Sorry I missed that one.
……….Hope this clarifies a few things.
…………Good trading,
…………CM
P.S.-you dont really think ive ever posted what my main investment portfolio is made of?5000 hours of thought and consideration to a bunch of people that hate me.LOL
…………No one here hates you CP. We just don’t respond well to your unique style of leadership. All I know about what you’ve said about your investment portfolio is this – if I were as successful as you make yourself out to be, the first thing I’d do is tell my wife to quit her job and do something she really liked, like stay at home with the kids. Also, 5000 hours over 3 and a half years works out to 4 hours a day – every single day. I sincerely hope its been worth it.
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