It's easy to understand the current stock market, economists and traders talk up the prospects of the economy to draw in the weak minded investor, thus driving up the market. After the market rises, the traders sell taking the newbie investors dollars laughing all the way to the bank, the one that the now broke investor helped bail out with his tax dollars... it's a new bubble.Dow Jones = Funny Money The big fat cats will take the balance of your 401 K's in 2012.
Think IRA's. You may not make much interest but you will not lose you principal. I moved my funds to an IRA 4 months before the stock market bust and I did not lose a penny.The level of the markets is sheer fantasy they can drive up prices in the grocery stores and the gas pumps all they can but the fact is we are broke and when we the american consumer cuts back on what little money we have been spending they are going to drop like a stone Employers arent hiring and the people that do have a job are being locked in place as far as wages go so ride the bubble and get ready to short when Helicopter bens printing takes effect you will see main street shut down again it will take a few months for the reduced spending to show up from the inflation that is already happening people will not buy at higher prices you cant create any more earnings from employee reductions so the numbers cant be manipulated after the next quarter
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