Suddenly I think, ‘Ahhh! I see! Demand is more than supply, meaning price will go up until demand equals supply!’, at which point I think, ‘Whee! Investing is easy when you know to avoid stocks and bonds and buy gold, silver and oil.
Yesterday I wrote to you about the pessimism within the Argentine business community. However, Argentine businessmen are not the only ones in a bad mood… The Chilean businessmen are also more than a little bit worried about the situation the Chilean economy is going through.
You invested $100 in 2002 buying power to get back, after five years, $76 in 2002 buying power! Hahaha! Your ‘fabulous’ investment made a paper gain, but produced a real, inflation-adjusted loss of 25% of your money! Hahaha!