Today's Market
by Dr Invest

No, there is really nothing new to report. Everything we are seeing is, well, predictable. Look, go to GUARDIAN and look at this link: Guardian Indicator   Here are a few things they mention:

MARKET SECTORS

As many of you know, I warned of a market collapse in 2012. Only quantitative easing stopped the plummet. Trillions kept the market afloat, but was the same as money printing. New reports show that QE did little in improving the economy, but elevated the price of stocks. 

Despite glowing reports by the Federal Reserve of economic strength and president Obama's claim that his policies had saved the economy, data seems to show something a bit different. as early as the end of 2013, a number of sectors had already began to decline. It is just because the BUBBLE had risen so high from QE, that the effects of a declining economy had not yet become a reality. Surely the FED and the White House had this same data. My opinion is that the FED made an attempt to raise interest rates, so it would have more wiggle room for the coming reality of an economic decline. 

Christine Lagarde, IMF managing director, gave warning that emerging nations were facing a fifth consecutive year of slowing growth, adding that an increase in US interest rates could exacerbate conditions in some leading economies. (International Monetary Fund)

Conclusion

Clearly, the market is trending lower and set strongly into the market by 2015. The problem was there before 2015, but the economy had distance to fall before we felt it. Now, investors are faced with major losses, after major gains. 

Major risks did pay-off in major gains. But when you see $25,000, $50,000, or $100,000 losses in a month for some individual investors, it becomes a very threatening event. When these events occur once, followed by a bounce after the initial loss, there is hope that new gains will return. But after two events and the mounting losses almost doubling, any investor is reluctant to continue in the market. 

AAII is showing a rising negativity among members who believe the market is now trending downward. This simply means that more and more individual investors are reluctant to continue in the market. This trend will likely magnify the market trend downward.

We may see the market trend higher, but even the most devoted bears are expecting the S&P 500 to advance no further than 2000. My feeling is that we will see something less than 2000 and maybe with a great deal of volatility.

(note: the above article is for entertainment purposes only and not to be used as investment advice.)