Today's Market
by Dr Invest
Bubbly analyst remind the small investors that even though stocks are at an all time high, it is still a good time to put all your money in stocks. There seems to be no trepidation about the Greek Stock Index dropping 18% in one day, or a barrel of oil dropping from $120+ per barrel to $56 per barrel. Even professor Schiller who developed the Schiller Price Indicator, can't acknowledge that his own indicator is flashing that it is time to get out of the market. <http://finance.yahoo.com/video/scary-market-indicator-shiller-121400665.html>
Looking For Head & Shoulders
We are looking for the forming of a head and shoulders pattern and that pattern seems to be shaping up in such a way that March through May would be the target for a downturn. Now I am speculating here and that is why you are reading a BLOG. Blogs are entertaining and serve no purpose other than entertainment and that is especially true of this blog. So let me speculate a little.
Everyone knows that the market could continue to go up or could suddenly collapse at any moment, but several patterns do seem to be prime patterns. Most recessions begin with a Head & Shoulders pattern.
The Fed-eral-Reserve Is On Its Way!
The Republicans are empowered by a populace that is exhausted from government debt. Obama has already spent more than any previous president, initiated programs that will increase debt and limit incomes for years into the future, and with Fed stimulus programs increasing our national debt to even higher extremes, people are DEMANDING that the spending stop. This puts the Federal Reserve in even a more difficult position, opening the way for recession to finally unfold. Yet, it is likely that pressure will be put on the Fed to continue limited stimulus programs to advert any market downturns.
House of Cards
Recessions in Japan, Greece, Russia, and China are not without consequence. Other markets are also teetering on the edge of recession and likely to fall into recession. Can the U.S. continue a vibrant recovery in the face of world-wide recession?
I think you know the answer to this question. No!
Since 2012, copper prices have collapsed while stock prices have soared. Since the price of copper moves with the price of stocks, it has been my belief that the market collapsed in May of 2012. May of 2012 was when Bernake began his major stimulus program which kept stock prices from collapsing, but the economy never really ignited as hoped.
If you are to remain in the market, be agile. He who gets out first, saves the value of his portfolio.
(Note: the above information is for entertainment purposes only and not to be used in ANYWAY as investment advice.)
by Dr Invest
Bubbly analyst remind the small investors that even though stocks are at an all time high, it is still a good time to put all your money in stocks. There seems to be no trepidation about the Greek Stock Index dropping 18% in one day, or a barrel of oil dropping from $120+ per barrel to $56 per barrel. Even professor Schiller who developed the Schiller Price Indicator, can't acknowledge that his own indicator is flashing that it is time to get out of the market. <http://finance.yahoo.com/video/scary-market-indicator-shiller-121400665.html>
Looking For Head & Shoulders
Everyone knows that the market could continue to go up or could suddenly collapse at any moment, but several patterns do seem to be prime patterns. Most recessions begin with a Head & Shoulders pattern.
The Fed-eral-Reserve Is On Its Way! The Republicans are empowered by a populace that is exhausted from government debt. Obama has already spent more than any previous president, initiated programs that will increase debt and limit incomes for years into the future, and with Fed stimulus programs increasing our national debt to even higher extremes, people are DEMANDING that the spending stop. This puts the Federal Reserve in even a more difficult position, opening the way for recession to finally unfold. Yet, it is likely that pressure will be put on the Fed to continue limited stimulus programs to advert any market downturns.
House of Cards
Recessions in Japan, Greece, Russia, and China are not without consequence. Other markets are also teetering on the edge of recession and likely to fall into recession. Can the U.S. continue a vibrant recovery in the face of world-wide recession?
I think you know the answer to this question. No!
Ken
Moraif wrote: The
international monetary fund (IMF) cut its 2014 world growth forecast for
the sixth time since January 2013. Europe, Japan and China all seem
to be on the verge of recession and are fighting to create growth.
All
of their respective central banks are ramping up the process of
printing untold trillions of dollars in an effort to stimulate their
economies. As we saw last week, the Market will receive this very
favorably. The Market doesn't care whether the growth is real or
artificial it only cares that there is some.
The
prospect of massive government stimulus programs in all of those
economies will most likely make the Market go up over the next few
months. The problem, of course, is that you can pump adrenaline into
a sick person and he could get up and run around the room, but once
the adrenaline wears off, the patient is still sick. This may very
well be the case when governments around the world run out of
stimulative options and all we are left with is a mountain of debt.
When
that happens, the Markets will no longer be happy and we could see a
significant correction.
If
you are concerned about the market setting all-time highs and look
below you and see nothing but the abyss, let
me say that I agree with you.
The rise since the end of the last bear market is historic. You and I
both know that the higher the market goes, the further down it could
fall.
Couple
this with the fact that the longer we go between bear markets the
more severe the bear market is when it finally gets here and we have
the recipe for market volatility. We average a bear market every
three and a half years. It has now been over seven years since the
last one started. We are now 42 months overdue.
Since 2012, copper prices have collapsed while stock prices have soared. Since the price of copper moves with the price of stocks, it has been my belief that the market collapsed in May of 2012. May of 2012 was when Bernake began his major stimulus program which kept stock prices from collapsing, but the economy never really ignited as hoped.
If you are to remain in the market, be agile. He who gets out first, saves the value of his portfolio.
(Note: the above information is for entertainment purposes only and not to be used in ANYWAY as investment advice.)
