Warning: That plunge in stocks is just the beginning
- Individual investors are plowing money back into the U.S. stock market just as professional strategists say gains for this year are over. About $100 billion has been added to equity mutual funds and exchange-traded funds in the past year, 10 times more than the previous 12 months, according to data compiled by Bloomberg and the Investment Company Institute.
- Professional investors, such as Nick Skiming of Ashburton Ltd., say that individuals investors are attracted to stocks after seeing others getting rich from a big rally, a time when equities are usually overpriced. The bursting of the technology bubble in March 2000 was marked by mutual funds absorbing a record $102 billion in the first quarter.
Guess who has been selling their stock to the muppets? You guessed right. The Wall Street scumbags have lured the muppets into the market for the next slaughter. I believe the Wall Street oligarchs are now positioned short and are attempting to ignite a conflagration on par with 2008. It’s not like these criminals haven’t done this before. They were selling derivatives to their muppet clients in 2008, while simultaneously shorting those derivatives.
The Wall Street bankers see their heroine dealers at the Fed cutting off the flow of heroine (QE) and they will not stand for it. They will create a new financial crisis and then use their corporate MSM to scream for a banker bailout to save the country again. The captured politicians will rally around the Wall Street flag and do whatever it takes with your money to save the country. They’ll do it for the children. Democrats and Republicans will finally come together and cooperate to screw you again.
Mom and pop muppets will be slaughtered again, but Wall Street will dole out record bonuses next year. This story never grows old.
“Look at all the money I’ve made!”
“You haven’t made it unless you sell it and book the gains.”
“I have stop-losses set up, I won’t loose more than 20% (of original, so fully lose more than 50% of today’s value)”
“Whom are you going to sell too?”
blank look. “um, there’s always a buyer, um, always.”
Good luck with that.
Yup, so few fail to understand to sell there must be a buyer, and fewer understand who the buyer is.
Another fun one is to ask, If you lose money in a stock trade, where does the money go.
One of my friends is a financial adviser, she answered, it just goes away…….
Hard to fight the Fed, regardless,be careful, very careful. John
Do not fight the Fed.. Old, old truism..
I’ve got a number of long and junk bond shorts in place – loosing here, gaining there, but sooner or later I’ll have to pay capital gains on the paper.
I’ve quit (for the moment) investing is physical gold and silver. In fact I stopped back when gold was $700 and silver was $7. Poor me. I will be back in buy mode very soon now, I think but I’ll let my trading system (Market Reversal Oscillator) tell me when.
I may have to hold the short-bond possession for a while – but hell, I shorted the long bond at 3.56% and the draw down is zilch. The upside is unlimited while the downside on long term treasury shorts is just about nothing. I’ve been following some junk bonds and will short them as well when the time is a little closer to crunch time (which can be anywhere from a week to six months).
I will be shorting the S&P Index real soon now but not until it cannot climb above its’ last high and sells off again..
The Fed’s have fucked up the entire pricing mechanism of bonds and equities that NO ONE has a clue what the real price of anything is. With almost 6 years of ZIRP, the equities markets simply are adrift on a sea of risk without anyway to price in risk, true equity value or anything else.
When everyone runs for the exit at one time, you will, I hope, not be surprised by both a Federally mandated Market closure and a bank holiday. Then see how long it takes the idiots in DC and the Fed and the banks who own the Fed to straighten it all out so they gain and we all loose.
Bring popcorn and beer and brats because it may take a while..
MA