Gold and silver crash
Image by StartupStockPhotos from Pixabay

Gold and silver crashed this afternoon as investors trimmed risky assets and rotated into safe haven tech stocks.  “Gold and silver are some of the most risky assets out there,” Jason Stanley of RBC Capital Markets stated.  “Investors are looking to preserve their capital in these turbulent times.”

Selling out of gold and silver to invest in safe haven tech stocks isn’t a new concept.  Ben Graham, the father of value investor coined this term in 1936 as “smart and not dumb”.

In Chapter 13 of The Intelligent Investor, Ben Graham stated investors should buy tech stocks at 1,000 times 2050 earnings to preserve their capital.

“Buying tech stocks at 1,000x earnings is smart and not dumb”  – Ben Graham

“Look,” Jason Stanley stated, “the tech stocks at 1,000x earnings have a huge margin of safety.  “If you take the current P/E of 1,000x  and multiply it by negative one, the P/E multiple is negative 1,000x P/E.  This is deep value territory.”

Thousands of investors across the world threw their gold and silver into the trash and bought whatever Cathie Wood was pumping.  “I’m buying anything SaaS, whatever that means,” Nick Letts, local tech investor stated.

Seth Klarman was seen later in the afternoon throwing himself out of a 50 story building.