Today's Market
by Dr Invest
If you are small investor, I encourage you to remain patient. In this market, there are two things you need to do; control losses by use of a stop-sell and don't buy stocks while at a premium value. People, excited about getting into a vibrant and rising stock market, have sold their bond positions and the government, suggesting that the stimulus program will soon be reduced, has become a threat to anyone holding bonds. Banks, having a tightening of their liquidity, have begun raising their interest rates. In the past month, interest rates have risen a half point. The government has done an excellent job of herding people toward stocks, but any investment position at this time will surely end in tears.
Here's why. Among the multitude of voices declaring an end to the recession and the beginning of a bull market is an overriding fact, we are still in a STIMULATED ECONOMY. Recent 200 point downturns in the DOW is due to an inference that the government would cut back their stimulus. Let me assure you, ANY REDUCTION IN STIMULUS by the FED will result in an immediate decline in ALL MARKETS. This is not the sign of a healthy and vibrant economy that is rebounding, but rather, an economy that is sick, lethargic, and near death. It is under these circumstances that hundreds of thousands of investors are encouraged to invest their fortunes into stocks.
Many investors understand that the present market is ARTIFICIAL, it is a MIRAGE, it is a LIE, yet; investors are so determined to see gains, they blindly place their money into the grandest of all PONZI SCHEMES that is run by our federal government. So the headline:"Nikkei Rises on Solid U.S. Jobs", seems to imply that we are well on our way toward recovery, but here is the rest of that article:
"shares rebounded strongly on Monday, tracking a rally in global equities following U.S. jobs data that was solid but not strong enough to cause worry about near-term tapering of the Federal Reserve's ...
This is like saying, "The Titantic remains afloat, although many leaks persist and we hope the pumps keep working." Among lagging job reports, declining retail sales, decreasing buying power and increasing prices for commodities, there is a sinking feeling that among the poor and middle class that things are indeed getting worse. Add to this, ever increasing income taxes, property taxes, and Obama Care taxes. Then, recent studies show that Obama Care will not decrease healthcare costs, but increase healthcare costs. Those who are poor will be subsidized, but the middle class will carry the weight of these insurance costs. The wealthy "one percent" has plenty of income to pay for premium healthcare insurance and their taxes, the poor will have the middle class paying for their insurance because the middle class represents the largest part of the population paying the higher prices for healthcare to cover the poor who are subsidized by them. The middle class will pay higher healthcare costs and the lion's share of the taxes. (see www.economicpopulist.org - article: The Rich and the Rest of Us) The U.S. census says that 48% of the population are low income earners. 4.2% of the population make more than $250,000 annually. What this means is that 51.8% of the middle-class will be paying for the 48% who need healthcare subsidy. I was thinking that the government would pull money from their MAGIC BUCKET and pay for the low income earners, until I discovered that the government's Magic Bucket was my billfold.
What does all this mean. There is an end to stimulus, an end a kiting stock market, an end to limitless healthcare, and the end to the perceived good-times. When that end comes, the good-times will be met with tears and catastrophic reductions. Some say, "The government will keep the ball rolling, they will pay for the good-times to continue; but if history is an indicator what happens during a collapse, you need to look no further than the State of Minnesota, the State of New Jersey, or the City of Detroit. Governments do go bankrupt and the only avoidance are forced cuts to spending or reduction of services to the people.
Enough said. Wait for the economic cycle to turn down, only then will you be able to return back to the market.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
by Dr Invest
Here's why. Among the multitude of voices declaring an end to the recession and the beginning of a bull market is an overriding fact, we are still in a STIMULATED ECONOMY. Recent 200 point downturns in the DOW is due to an inference that the government would cut back their stimulus. Let me assure you, ANY REDUCTION IN STIMULUS by the FED will result in an immediate decline in ALL MARKETS. This is not the sign of a healthy and vibrant economy that is rebounding, but rather, an economy that is sick, lethargic, and near death. It is under these circumstances that hundreds of thousands of investors are encouraged to invest their fortunes into stocks.
Many investors understand that the present market is ARTIFICIAL, it is a MIRAGE, it is a LIE, yet; investors are so determined to see gains, they blindly place their money into the grandest of all PONZI SCHEMES that is run by our federal government. So the headline:"Nikkei Rises on Solid U.S. Jobs", seems to imply that we are well on our way toward recovery, but here is the rest of that article:
"shares rebounded strongly on Monday, tracking a rally in global equities following U.S. jobs data that was solid but not strong enough to cause worry about near-term tapering of the Federal Reserve's ...
This is like saying, "The Titantic remains afloat, although many leaks persist and we hope the pumps keep working." Among lagging job reports, declining retail sales, decreasing buying power and increasing prices for commodities, there is a sinking feeling that among the poor and middle class that things are indeed getting worse. Add to this, ever increasing income taxes, property taxes, and Obama Care taxes. Then, recent studies show that Obama Care will not decrease healthcare costs, but increase healthcare costs. Those who are poor will be subsidized, but the middle class will carry the weight of these insurance costs. The wealthy "one percent" has plenty of income to pay for premium healthcare insurance and their taxes, the poor will have the middle class paying for their insurance because the middle class represents the largest part of the population paying the higher prices for healthcare to cover the poor who are subsidized by them. The middle class will pay higher healthcare costs and the lion's share of the taxes. (see www.economicpopulist.org - article: The Rich and the Rest of Us) The U.S. census says that 48% of the population are low income earners. 4.2% of the population make more than $250,000 annually. What this means is that 51.8% of the middle-class will be paying for the 48% who need healthcare subsidy. I was thinking that the government would pull money from their MAGIC BUCKET and pay for the low income earners, until I discovered that the government's Magic Bucket was my billfold.
What does all this mean. There is an end to stimulus, an end a kiting stock market, an end to limitless healthcare, and the end to the perceived good-times. When that end comes, the good-times will be met with tears and catastrophic reductions. Some say, "The government will keep the ball rolling, they will pay for the good-times to continue; but if history is an indicator what happens during a collapse, you need to look no further than the State of Minnesota, the State of New Jersey, or the City of Detroit. Governments do go bankrupt and the only avoidance are forced cuts to spending or reduction of services to the people.
Enough said. Wait for the economic cycle to turn down, only then will you be able to return back to the market.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
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