Market Bottom?

[Care4all]

silly question i suppose but are there choices in most people's 401k's to choose an investment that is not invested in the stock market? like, can you purchase certificate of deposits, that are safe, with 401k money/company match money?

 

[saveliberty]

The big question: When will the small investors inject new money into the market?

At this point it is just one big retreat. My upside has to be much better than the down before I'll budge. I'm thinking that is around 8800.

That big question has a lot of little questions inside of it:

At this point a Gold bull market in the euro is causing a real shortage to develop in anti-inflation investments and driving up the costs of US imports. So why buy equities?

More people are running out of UE bennies and going homeless. How can they add to consumption?

More state and local governments are teetering on the edge of insolvency/bankruptcy every week. The muni-treasury hedge of a few months back has destroyed a huge chunk of the nation's private capital so where will the capital come from?

More information about missteps by the current administration's economic team going as far back as to when they were part of the Clinton economic team liquidating Long Term Capital Management keeps dribbling out. Two memoirs of former Bear Strearns CEOs are supposed to come out later this year. So, if evidence is presented that most of the current administration's economic team knew in 1998 that a real estate meltdown was building and did nothing ("House of Cards" William Cohan) and that is what is going to be claimed who will trust this administration not to screw the pooch again? Bear Stearns stayed out of the LTCM bailout entirely and Lehman contributed only a third as much other participants. How come Geithner and Summers didn't figure out that Bear and Lehman were sending out signals of pending insolvency? A totally unfair question I will grant you but it will be asked.

With that much bad news in the pipeline who, besides insiders, has enough information to take unhedged long positions? Where is a surefire bottom above 1200 DJIA? Why is anyone going to buy into all of the recovery hype?

The Wall Streeters will not let the market fall too far. It isn't in their best interests. The market is totally rigged at this point. Misleading corporate and government reporting and on and on....

 

[The Rabbi]

silly question i suppose but are there choices in most people's 401k's to choose an investment that is not invested in the stock market? like, can you purchase certificate of deposits, that are safe, with 401k money/company match money?

Not silly at all.
You can use your 401k to invest in a very wide range of things. That includes gold and real estate, as well as CDs and bonds.

 

[william the wie]

silly question i suppose but are there choices in most people's 401k's to choose an investment that is not invested in the stock market? like, can you purchase certificate of deposits, that are safe, with 401k money/company match money?

Not silly at all.
You can use your 401k to invest in a very wide range of things. That includes gold and real estate, as well as CDs and bonds.

Well it depends on the company plan, the less options the less it costs the company to offer the plan.

 

[Baruch Menachem]

Don't see a bottom for quite a while yet.

Well, unless Manifold or VanYank post.

We still have way too high unemployment, taxes are going up, the states and the federal government are not letting go of silly spending, obligations and entitlements are not being tamed.

In order for the market to recover, the government needs to address the fundamental problems they are causing. Instead of fixing issues, they are compounding them

Now it the time to prepare for storms for a long time

 

[Paulie]

The big question: When will the small investors inject new money into the market?

At this point it is just one big retreat. My upside has to be much better than the down before I'll budge. I'm thinking that is around 8800.

That big question has a lot of little questions inside of it:

At this point a Gold bull market in the euro is causing a real shortage to develop in anti-inflation investments and driving up the costs of US imports. So why buy equities?

More people are running out of UE bennies and going homeless. How can they add to consumption?

More state and local governments are teetering on the edge of insolvency/bankruptcy every week. The muni-treasury hedge of a few months back has destroyed a huge chunk of the nation's private capital so where will the capital come from?

More information about missteps by the current administration's economic team going as far back as to when they were part of the Clinton economic team liquidating Long Term Capital Management keeps dribbling out. Two memoirs of former Bear Strearns CEOs are supposed to come out later this year. So, if evidence is presented that most of the current administration's economic team knew in 1998 that a real estate meltdown was building and did nothing ("House of Cards" William Cohan) and that is what is going to be claimed who will trust this administration not to screw the pooch again? Bear Stearns stayed out of the LTCM bailout entirely and Lehman contributed only a third as much other participants. How come Geithner and Summers didn't figure out that Bear and Lehman were sending out signals of pending insolvency? A totally unfair question I will grant you but it will be asked.

With that much bad news in the pipeline who, besides insiders, has enough information to take unhedged long positions? Where is a surefire bottom above 1200 DJIA? Why is anyone going to buy into all of the recovery hype?

The Wall Streeters will not let the market fall too far. It isn't in their best interests. The market is totally rigged at this point. Misleading corporate and government reporting and on and on....

Bullshit.

The "wall streeters" also make their money on shorts. The market can rise or fall and the "wall streeters" will be just fine.

 

[saveliberty]

That big question has a lot of little questions inside of it:

At this point a Gold bull market in the euro is causing a real shortage to develop in anti-inflation investments and driving up the costs of US imports. So why buy equities?

More people are running out of UE bennies and going homeless. How can they add to consumption?

More state and local governments are teetering on the edge of insolvency/bankruptcy every week. The muni-treasury hedge of a few months back has destroyed a huge chunk of the nation's private capital so where will the capital come from?

More information about missteps by the current administration's economic team going as far back as to when they were part of the Clinton economic team liquidating Long Term Capital Management keeps dribbling out. Two memoirs of former Bear Strearns CEOs are supposed to come out later this year. So, if evidence is presented that most of the current administration's economic team knew in 1998 that a real estate meltdown was building and did nothing ("House of Cards" William Cohan) and that is what is going to be claimed who will trust this administration not to screw the pooch again? Bear Stearns stayed out of the LTCM bailout entirely and Lehman contributed only a third as much other participants. How come Geithner and Summers didn't figure out that Bear and Lehman were sending out signals of pending insolvency? A totally unfair question I will grant you but it will be asked.

With that much bad news in the pipeline who, besides insiders, has enough information to take unhedged long positions? Where is a surefire bottom above 1200 DJIA? Why is anyone going to buy into all of the recovery hype?

The Wall Streeters will not let the market fall too far. It isn't in their best interests. The market is totally rigged at this point. Misleading corporate and government reporting and on and on....

Bullshit.

The "wall streeters" also make their money on shorts. The market can rise or fall and the "wall streeters" will be just fine.

They make money on the volitility, so a continued drop of the down to 1200 DJIA nature would not be helpful. Big slide followed by a nice jump works much better.

 

[Paulie]

The Wall Streeters will not let the market fall too far. It isn't in their best interests. The market is totally rigged at this point. Misleading corporate and government reporting and on and on....

Bullshit.

The "wall streeters" also make their money on shorts. The market can rise or fall and the "wall streeters" will be just fine.

They make money on the volitility, so a continued drop of the down to 1200 DJIA nature would not be helpful. Big slide followed by a nice jump works much better.

You don't understand how the markets work apparently. If you have heavy short positions, nothing could be better for your upside than a continued drop in the markets.

 

[saveliberty]

Bullshit.

The "wall streeters" also make their money on shorts. The market can rise or fall and the "wall streeters" will be just fine.

They make money on the volitility, so a continued drop of the down to 1200 DJIA nature would not be helpful. Big slide followed by a nice jump works much better.

You don't understand how the markets work apparently. If you have heavy short positions, nothing could be better for your upside than a continued drop in the markets.

I understand markets well enough to know that I can make much more money on the swings than just a massive short.

 

[Paulie]

They make money on the volitility, so a continued drop of the down to 1200 DJIA nature would not be helpful. Big slide followed by a nice jump works much better.

You don't understand how the markets work apparently. If you have heavy short positions, nothing could be better for your upside than a continued drop in the markets.

I understand markets well enough to know that I can make much more money on the swings than just a massive short.

That may very well be the case, for you. I'm simply commenting on the fact that you said a drop would not be helpful, when in fact it would be for those who are short.

 

[peter]

Where is the bottom on the current market? With so much uncertainty out there it doesn't make sense to be in anything but cash right now. The downside potential is enormous, with sovereign debt default, municipal defaults, and bad gov't policy just around the corner.
Prices on stocks have come down but I am thinking they will need to go further to make up for all the risks.
Any thoughts?

I guess you'll miss the bottom even if you try hard. Current market can be in "little correction", which was obvious, when Dow hit 11,000. I expect Dow to rise "sometimes in the near future" and dollar to strenghten against euro.

 

[The Rabbi]

Where is the bottom on the current market? With so much uncertainty out there it doesn't make sense to be in anything but cash right now. The downside potential is enormous, with sovereign debt default, municipal defaults, and bad gov't policy just around the corner.
Prices on stocks have come down but I am thinking they will need to go further to make up for all the risks.
Any thoughts?

I guess you'll miss the bottom even if you try hard. Current market can be in "little correction", which was obvious, when Dow hit 11,000. I expect Dow to rise "sometimes in the near future" and dollar to strenghten against euro.

I expect I will sleep with super models.
What makes you think this?

 

[peter]

Where is the bottom on the current market? With so much uncertainty out there it doesn't make sense to be in anything but cash right now. The downside potential is enormous, with sovereign debt default, municipal defaults, and bad gov't policy just around the corner.
Prices on stocks have come down but I am thinking they will need to go further to make up for all the risks.
Any thoughts?

I guess you'll miss the bottom even if you try hard. Current market can be in "little correction", which was obvious, when Dow hit 11,000. I expect Dow to rise "sometimes in the near future" and dollar to strenghten against euro.

I expect I will sleep with super models.
What makes you think this?

I guess you will be lucky

Anyway, sometimes market HAS to go up. Now, tomorow, next month ...

 

[Toro]

Today's action was a great illustration of bear market action.

We opened strong and sold into the close to take us negative for the day. This tells me there is more downside to come.

We have had many days like today over the past month.

 

[The Rabbi]

Today's action was a great illustration of bear market action.

We opened strong and sold into the close to take us negative for the day. This tells me there is more downside to come.

We have had many days like today over the past month.

Yes. Maybe short covering in the morning followed by fundamentals. Who knows? I know there is no reason to buy and every reason to sell right now.

 

[Neubarth]

Today's action was a great illustration of bear market action.

We opened strong and sold into the close to take us negative for the day. This tells me there is more downside to come.

We have had many days like today over the past month.

Yes. Maybe short covering in the morning followed by fundamentals. Who knows? I know there is no reason to buy and every reason to sell right now.

Oh Learned Man of the Sacred Scrolls, I feel that the powers that be will try to put in a bottom here just to lure more fools into the market. We could very easily see a 1000 point improvement over the next few weeks. But then what?

China now claims that their exports soared fifty percent in a month. Though I doubt that is accurate, I will accept it for the time being. They have lied tremendously in the past as anybody who has followed their machinations in the market knows.

The US economy has shown improvement, but we are still not generating enough jobs to make up for the young people and immigrants who are entering the job market. The DOL, of course, just like always will continue to deny that they are there.

So what do we have? It still looks like a half empty glass to me.

 

[saveliberty]

You can buy on a Friday...as long as you dump it on Monday the last couple of weeks.

 

[Neubarth]

Today's action was a great illustration of bear market action.

We opened strong and sold into the close to take us negative for the day. This tells me there is more downside to come.

We have had many days like today over the past month.

The selling late in the day is characteristic of the Goldman Sachs Machine Trading program. IF Goldman is satisfied that they have lowered the market as far as they can, then and only then will we see a rally.

GS has been having trouble with their downward movement program that I told you a month ago appeared to be in progress. They may give us a sucker rally of up to 1000 points in the near future.

 

[Terral]

Hi Rabbi:

Market Bottom? Where is the bottom on the current market? With so much uncertainty out there it doesn't make sense to be in anything but cash right now. The downside potential is enormous, with sovereign debt default, municipal defaults, and bad gov't policy just around the corner.

Prices on stocks have come down but I am thinking they will need to go further to make up for all the risks.
Any thoughts?

No!!! There is "NO" Market Bottom! Say that to yourself 1000 times and then believe it! Why is there "NO" Market Bottom? Thank you for asking:

1. There is no bottom in the Housing Market, because:

a. Too many Illegal Aliens have taken too many JOBS from real American Workers, which has destroyed the Consumer Base and the local Tax Base. That is why "Demand Destruction" is running rampant throughout the U.S. Economy, which is the ONLY reason that inflation has been kept in relative check amid all the printing of dollars.

b. Too many Guest Worker Programs (23) have displaced too many U.S. Workers from the job market, which means fewer and fewer buyers to make offers on your house.

c. NAFTA Offshoring of the manufacturing base has shipped FAR too many JOBS overseas, which means fewer buyers to make offers on your house that has gone into foreclosure ...

d. Too many foreclosures in the neighborhood has kicked the bottom out of the housing market and there is no end in sight.

2. The U.S. Dollar is toast. The only reason that the worthless U.S. Dollar has apparent strength cuckoo is because the Euro and Pound are decreasing in value at an accelerated rate. Eventually the idiots buying worthless dollar will realize the game is crooked and the USA will go the way of Greece and other foolish countries that refuse to rein in spending. Yes. Stock prices can go up, but in worthless dollars. You could buy the entire S&P Index for five ounces of gold in 2000, but today the S&P is worth 'less' than a single ounce of gold. Do the math ...

The markets are being propped up today by all of the Stimulus Bailout Money and the Banks are borrowing money from the FED Window at near zero percent to invest in the crooked stock markets. The current GDP figures include bank profits from gaming the system, when in reality the US Economy imploded in March of 2009; after being wired for implosion on September 18, 2008 (Paulson + Bernanke 3-page memo/template to Congress). The stock markets are held up by confidence and LIES and the entire system will CRASH when idiot day traders wake up and smell the coffee ...

GL,

Terral

 

[Modbert]

Stock Advice from Terral? Guess he's branching out.