Discussion in 'Stock Market' started by Mr.Fitnah, Aug 19, 2009.
I say end of Oct.
Very soon I would imagine. I think the thing driving this is the fact that there is still money sitting on the sidelines and those holding it have no idea what to do with it. The idea of leaving it under their mattress isn't very appealing although, as before, they may find that would have been the best place for it.
Dont forget beany babies and unopened BB mystery 10 pack that could have a Marlin Sphincter rookie card inside.
Hard to say.
Normally, one would expect a correction about now. However, the rally off the 38 low was 78% and the rally off the 74 low was 67%, even though the market then went sideways for several years thereafter. We've bounced about 50% since the March low.
Thats a dead cat bounce.
If stocks rise 65% then move sideways for five years, that is about a 10% per year return over 6 years. On average, stocks return about 10% per year.
Doesn't mean that will happen. We could fall hard. I don't know.
This rally is built on bail outs and Obamanomics. The Chickens will soon come home to roost.
It will be ugly and long, the sooner it hits the better, if these policies continue, I just cant imagine.
Why? Stocks in "socialist" countries did better than in the US this decade.
As long as the Fed shows us no signs of tightening their policy, equities will remain around these levels or higher, in my opinion.
I imagine that most investors are betting on inflation...I know I am.
There's ZERO reason to believe Bernanke has a viable exit strategy. History tells us he won't.
This doesn't mean you shouldn't have a percentage of your savings in cash positions, though.
Hi Mr. Fitnah:
To gain a good overview of what is really going on with the markets, then you must take a few giant steps back and look at the big picture:
1. Nothing is being done to stop record 'outsourcing' of JOBS overseas to foreign markets and the offshoring of the U.S. Manufacturing Base.
2. Nothing is being done to stop the importation of Foreign Nationals (legal and illegal) into the U.S. Labor Markets, which is destroying the 'Consumer Base' for all of your goods and services.
3. Twenty to Thirty MILLION Illegal Alien Foreign Nationals are 'displacing' U.S. Workers from JOBS at every level of the local JOB markets with the U.S. Govt being the biggest employer of Illegal Aliens in the USA.
These three points explain why the local markets are experiencing 'deflation' in the housing markets that forces house prices DOWN with every passing month. However, then we must back up and look at the 'inflationary' pressure cased by all of the 'spend and tax and spend' going on with these Bailout/Stimulus Plans that inject far too much 'borrowed' money into the economic system:
1. Injecting all of this borrowed money into the system causes opposing 'inflationary stress' upon the broader economic system, which means the dollars in your pocket are worth 'less' with every passing day.
2. Cap and Tax (and similar) Legislation creates a 'higher cost' for every American Company that reduces your ability to compete in a Global Market where foreign companies are not forced to produce goods and services under the same rules; which forces more and more JOBS overseas. Raising your prices to cover these new taxes (higher costs) creates the 'inflationary' stress that adds to the problem of the Stimulus/Bailout Bubble that is about to burst.
3. Obamacare adds even more 'costs' to the American Cost of doing business, which is yet another cause of inflationary stress that is reducing your ability to compete with China, India and other countries living under a completely different set of rules.
4. Bailing out the Banks, Insurance Companies, Automakers, States, Etc., is forcing the privately-owned FED to print up Trillions and Trillions of dollars out of thin air, which again reduces the value of each dollar in your pocket; 'and' all of that money was handed out with 'interest' attached.
Boil everything down and perhaps you will realize that the value of the U.S. Dollar MUST go down, which means you need 'more' dollars to buy the same goods, services and commodities with every passing day. The stock markets are going up, because the 'value of the dollars' used to buy those stocks is GOING DOWN. This means that the Dow Jones can go up to 15,000, but if the money is worth 1/3 of the value from two years ago, then the value is actually "5000" in real dollars.
Gold can go to 3000 dollars, but if the dollar is worth only 1/3 from two years ago, then the real value of gold is approaching 1000 dollars. The owners of the FED (Gary Allen's book = my sig) are devaluing your U.S. Dollar, which is causing oil, gold and the stock markets to go 'up,' when in reality the real value is going DOWN. The False Flag Recovery will continue until the deflationary pressures send house prices into the ground 'and' the day traders (like China, Russian and the Arabs) wake the hell up and realize that the dollar is worth nothing. Yes, it will take 10,000 dollars to buy one share of General Motors, but that will be the price of one loaf of bread. :0)
Dr. Bill Deagle Explains In Recent Edition Of The Nutrimedical Report
Most of what I say has very little meaning to most of you, because the USA is worthy of utter destruction (my Topic) and the cattle are already heading for the slaughterhouse (my Swine Flu Topic) . . .
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