Today's Market
by Dr Invest
We are being reminded that we have entered a robust recover and that there are NO RISKS in putting your life savings into stocks. In fact, we are told, there is no better opportunity to invest because stocks are so amazingly low after our recent decline. This is the magic reset that will allow us yet another year of great profits in the bright future of stocks.
Now all of this GOOD NEWS, must be weighed in the light of one major fact. We are still on stimulus. The government is still printing money.... oops, providing liquidity to the market. But the fact is that our economy is on life support and when it is removed, stocks will tank. To reassure us, the Federal Reserve says that they will be around to keep and eye on things and will not reduce stimulus if the market shows weakness.
Most people I know, don't believe that! When was the last time government made a great effort to save the common investor? They save BANKS, because they are too big to fail. But the little investor has no friends to save their investment, and in truth, there is a plan to redistribute their wealth. (see Robert Shiller, advisor to Democratic Presidents) He says, that this has been in the works for years. Just as in the Great Depression, the little investors are the ones who will experience the greatest hurt in a sudden fall in stock prices.
So as stocks rebound, one has to ask the question, WHY? The EU is on the verge of collapse, the economy in China is slowing, Amazon's profits fell this quarter, Sears is closing 100 stores and letting go over 5,000 employees, soaring costs of housing is shutting out homebuyers, Ford Co. profit falls, more Ebola cases arrive in the U.S., the middle class continue to lose their buying power, corporations continue a move toward part-time employees to avoid payment for employee healthcare, real inflation continues to climb, while most middle class Americans have seen a decrease in income.
During the 2008 recession, many people lost their jobs. They had years of experience, giving them seniority. But by 2010, business culture had changed. Cutting the senior positions, allowed corporations to hire MORE EMPLOYEES to PART-TIME positions, saving the corporations the cost of healthcare. Furthermore, many corporations stopped their pension plans and moved to 401Ks that would now be owned by the employee. The corporation would provide matching funds to the 401K, but the employee would now be responsible for their own investment. The corporation would no longer be responsible for a pension fund that might be underfunded years later.... the employee would now be the only person to take the risk of a falling market, the employee would catch the falling knife.
So imagine having worked for 15 years, getting maximum pay, and then being "let go". Thinking that you could still get the same pay for your years of experience, you seek other companies to hire you. But you find that the only jobs offered are ENTRY LEVEL and PART-TIME. You still need to survive, you still need a salary. So you take the entry level part-time job. You are now making half as much as your earned two years earlier. Should I mention, that Obama-Care is the only source of healthcare insurance and the original promises of keeping your own doctor, and a $4,000 deductible has grown to $6,000 deductible. You pay $6,000 per person before insurance kicks in. A family of four could be out $24,000 in medical expenses before coverage begins. The average income in the U.S. has been $52,000 per year. Now that average income has fallen to around $48,000 to $49,000. Subtract $24,000 and your are near poverty level.
Robust economy, uhh, no! Possibly in the imagination of some politicians and economists, but in real life, we seem light years away from a robust economy. Don't invest blindly. Understand that in the near future, we will return to a failing stock market and it won't be pretty.
(note: the above article is for entertainment purposes only and not to be used as investment advice.)
by Dr Invest
We are being reminded that we have entered a robust recover and that there are NO RISKS in putting your life savings into stocks. In fact, we are told, there is no better opportunity to invest because stocks are so amazingly low after our recent decline. This is the magic reset that will allow us yet another year of great profits in the bright future of stocks.
Now all of this GOOD NEWS, must be weighed in the light of one major fact. We are still on stimulus. The government is still printing money.... oops, providing liquidity to the market. But the fact is that our economy is on life support and when it is removed, stocks will tank. To reassure us, the Federal Reserve says that they will be around to keep and eye on things and will not reduce stimulus if the market shows weakness.
Most people I know, don't believe that! When was the last time government made a great effort to save the common investor? They save BANKS, because they are too big to fail. But the little investor has no friends to save their investment, and in truth, there is a plan to redistribute their wealth. (see Robert Shiller, advisor to Democratic Presidents) He says, that this has been in the works for years. Just as in the Great Depression, the little investors are the ones who will experience the greatest hurt in a sudden fall in stock prices.
So as stocks rebound, one has to ask the question, WHY? The EU is on the verge of collapse, the economy in China is slowing, Amazon's profits fell this quarter, Sears is closing 100 stores and letting go over 5,000 employees, soaring costs of housing is shutting out homebuyers, Ford Co. profit falls, more Ebola cases arrive in the U.S., the middle class continue to lose their buying power, corporations continue a move toward part-time employees to avoid payment for employee healthcare, real inflation continues to climb, while most middle class Americans have seen a decrease in income.
During the 2008 recession, many people lost their jobs. They had years of experience, giving them seniority. But by 2010, business culture had changed. Cutting the senior positions, allowed corporations to hire MORE EMPLOYEES to PART-TIME positions, saving the corporations the cost of healthcare. Furthermore, many corporations stopped their pension plans and moved to 401Ks that would now be owned by the employee. The corporation would provide matching funds to the 401K, but the employee would now be responsible for their own investment. The corporation would no longer be responsible for a pension fund that might be underfunded years later.... the employee would now be the only person to take the risk of a falling market, the employee would catch the falling knife.
So imagine having worked for 15 years, getting maximum pay, and then being "let go". Thinking that you could still get the same pay for your years of experience, you seek other companies to hire you. But you find that the only jobs offered are ENTRY LEVEL and PART-TIME. You still need to survive, you still need a salary. So you take the entry level part-time job. You are now making half as much as your earned two years earlier. Should I mention, that Obama-Care is the only source of healthcare insurance and the original promises of keeping your own doctor, and a $4,000 deductible has grown to $6,000 deductible. You pay $6,000 per person before insurance kicks in. A family of four could be out $24,000 in medical expenses before coverage begins. The average income in the U.S. has been $52,000 per year. Now that average income has fallen to around $48,000 to $49,000. Subtract $24,000 and your are near poverty level.
Robust economy, uhh, no! Possibly in the imagination of some politicians and economists, but in real life, we seem light years away from a robust economy. Don't invest blindly. Understand that in the near future, we will return to a failing stock market and it won't be pretty.
(note: the above article is for entertainment purposes only and not to be used as investment advice.)
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