Is today the day the market starts to correct?

Discussion in 'Economy' started by Neubarth, Oct 16, 2009.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    The continued rise in the DOW is a product of IRA's and 401K plans. People at their place of work are putting aside $300 plus a month in their respective plans that most often invest in the S&P 500 or DOW indexes as most investors are not stock market savvy.

    Added to this is the fact that Goldman Sachs has found that if they hook their machine trading programs into the market on light days, they can run the market up or down to their liking. They can place derivative "bets" in the market and then manipulate it to their liking and make billions.

    The Obama administration knows about Goldman's manipulation and had decided to do nothing about it because Goldman has promised a big contribution to the Democratic Party if left alone to manipulate the market. In that regard, Obama is just as corrupt as Goldman and should be put on trial for theft.

    The Banks all will start selling when they have derivative bets that will pay off if the market goes down. To show you how corrupt it is, look at the P/E ratio of Intel or Chase Bank. They should have P/E's of 12 or so, but are carrying P/E's four times normal.

    If the banks want the market to turn south, they will move it that way and then all those fools with 401K plans and IRA's will lose their money all over again.

    Watch and see.
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    I have been a registered Democrat for 40 years. In seeing what I see with this administration, I can clearly say that this is the most corrupt administration in American History.

    I thought Dubya was corrupt, but the excesses of the Obama administration almost make Dubya look to have been a moralist.
     
  3. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Well I've been telling everyone that we should return to the concept of "Limited Government" but it seems to fall on deaf ears. A government with limited funds has limits on it's corruptibility.

    I don't know what's gonna happen and I'm done speculating. Peter Schiff said the commercial real estate market would go bust back in Feb-Mar but that has yet to happen.

    Most people say the current bull market (if you wanna' call it that) is another bubble and will burst when the gubamint funds run out. But all I can do is pay off debt and have a wait and see attitude.
     
  4. Toro
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    Toro Diamond Member

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    It might be, but topping is a process, not an event. If you study what happened during other market crashes such as 2008, 1987 and 1929, markets crashed only after they started rolling over. They did not crash when they were still rising.

    Currently, we are still rising and until shown otherwise, this is a pullback in an uptrend. Of course, anything can happen in markets, and maybe we will crash over the next few days, but that has never happened before, at least from what I have studied in market history.
     
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    Toro I do not always agree with you, but I respect your opinion. Is there a way to see how many SELL orders the Mutual Funds received today? I suspect that there is, But I don't know where to look.

    I think millions have told their 401K and Ira plans to get out of stocks. Some before the cutoff and some after the cutoff. Knowing human nature, I'd expect that the majority were after the cutoff today. If so, Monday might be known for ever more as BLACK MONDAY.

    Oh, in 1987, I was surprized as all get out that the market tanked. Was there really a noticible roll over before that sudden DROP?
     
    Last edited: Oct 16, 2009
  6. truthsaga
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    truthsaga Economic and BlowBack Ace

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    I'll put a date out there..

    After the vote on healthcare, whenever that is.. the market tanks and the fed raises interests rates to at least 5.5%

    What I would look at from this rally is that the market is going up but the dollar is going down, this is telling us that there's something wrong. Most likely, people are fearing inflation and look at the price of oil going up.
     
    Last edited: Oct 16, 2009
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    I don't see any reason for the Dollar to go down, and I do not see any reason or likelihood that the Fed will raise interest rates in the near term. Tain't gonna happen.
     
  8. Maple
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    Maple Senior Member

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    I am waiting too, I have been told by a very close friend who is a CFA, that this market will correct by 10-20%. I don't see how you can have a job-less recovery. When people don't have jobs, they don't purchase anything and in turn business's have less earnings, not more. The market goes up and down as profits go up and down, it's that easy and I don't see how they can be producing profits in this economy.
     
  9. Neubarth
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    Neubarth At the Ballpark July 30th

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    Yours is a very intelligent post. I expect a far greater correction. Companies like Intel or Chase are trading at a P/E four times normal. When I see that, I have to laugh. At the very least the market is overvalued by a factor of two.
     
  10. truthsaga
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    truthsaga Economic and BlowBack Ace

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    Last I checked the dollar is at new low's... gold is at record high's.
     

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