Thanksgiving Note

As Warren Buffett points out- Price is what you pay, Value is what you get.

Of course, he is talking about investments. As I have written many times the influence on the markets by the central banks have destroyed virtually all price discovery and has led to gross overvaluations of stocks, bonds, real estate, etc.  Therefore, you are paying a price that has no bearing on the value you are receiving. Pretty much, if you are buying today, you are counting on someone coming along and paying an even higher price later on.

In the opposite scenario- gold, silver and many other assets are being artificially repressed and even though they appear to be “risky” I believe they may be the least risky thing around. Actually, the central banks can only list 2 assets on their balance sheet as “riskless”. That would be US Treasuries and GOLD. This is likely one of the reasons they are buying gold in record amounts for the fourth straight year. (King World News) Since the price is artificially low it appears to me to be a chance to get an asset that has far more VALUE than is currently being accounted for. (BUY LOW SELL HIGH).

Since it is Thanksgiving, for me, this is generally a time for reflection. I am reminded of what is really valuable.

I remember as a child going to my grandparents house and I can still smell the turkey that was cooking for Thanksgiving. They made all of the holidays special for us but every time I smell a turkey cooking it transports me back to those wonderful times and wonderful memories. What is the VALUE of creating memories that last longer than we do? Probably far higher than we realize at the time.

I remember moving to New York when I was 19 and trying to start a new life. I had an aunt that would send me $5.00 from time to time. What seemed to be a nice gesture that let me know she was thinking of me was so much more. More than once that $5.00 was the difference of me eating that day or not. $5.00 bought a LOT more then. Sometimes when we extend kindness to another, and it is seemingly nothing much, it could mean the world to that person. What VALUE can you place on that?

While most of us have plenty to be thankful for there are some suffering more than usual because of illness or possibly the loss of a loved one recently. What VALUE can you place on being able to lift someone’s spirits even if it is only temporary?

There have been many times when I haven’t felt good about myself and someone will come along with  a nice gesture or just a kind word. It always seems to make things a bit better. What VALUE can you place on making someone’s day?

What VALUE can you really place on making those special memories you have of your parents and grandparents for your children and grandchildren?

What VALUE can you place on spending time with those that mean most to you?

The world seems to have lost its way, but I believe that the only thing we have control over is how we react to it. We can’t change the “printing” of trillions by central banks, but we can buy assets that we believe will hold value long after the currencies have been destroyed.

People my age (old) remember when this country stood for all that was good. Freedom, peace, etc.

It appears we are going in the wrong direction where right is wrong- wrong is right and criminals are treated better than law-abiding citizens in many cases. Despite all of that we have plenty to be thankful for.

Our family, friends, associates and the many people who have touched our lives through the years come directly to mind. We should also be thankful for the health we have and all of the material blessings we have had along the way. Temporary as they may be!

Nothing lasts forever so I want to wish every person reading this- particularly family, friends, associates, etc.

                    A Happy Thanksgiving!


Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.