Quote Originally Posted by Dreadnaught View Post
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Ag- Shorting gold makes some sense because there is a good chance the price increases are an asset bubble. But why short McDonalds and Google? Both are growing quickly, have solid performance and have made clear signs they intend to expand.
McDonald's:
Just look at how far they've grown in profits/stock price, and the expansion potential. Sure they changed their strategy and started offering healthier food, but that can only take you so far. (a 600% increase in stock price over 6 years or so) They have not that much of an advantage over local chains. Furthermore, McDonald's demand peaks when the economy is slow (since it's cheap), and drops off when the economy gets going again.

Google:
They are growing via acquisitions, not innovation, and have been for a while. Just like McDonald's, unless they come up with something totally new, there is nowhere left to grow.

Google, McDonald's, and gold. I don't see anywhere to go but down. Sure, McDonald's is expanding, even in my state in Massachusetts -- because they have cash, not because of sane decision-making. Sure, gold is going up right now because idiot investors think that the US won't raise the debt ceiling and everyone is concerned about inflation, but I think that inflation has already been factored into gold prices several times over. Sure, youtube is popular... but it was popular before.

You all should give me all your money. I'll take good care of it and I'll only take 10% of the profit...