Home Forums Hunting & Shooting Hunter's Campfire Dow at 14000!.....

The higher it goes the harder the correction.A schit storm is coming with the QE . Inflation has me really concerned.

I had a meeting with my Financial Advisor last week. He said there is no logical reason for the market to be as high as it is. It is has no real foundation under it. Also he said the market is long past due for a correction. It's time to be cautious. A quote he has used in the past is "Pigs get fat, Hogs get slaughtered"

FYI: The government guarantess most corproate defined benefit (*NOT* 401K) pensions.

http://www.pbgc.gov/

My neighbor is an Econ professor at the state university.

He is very concerned about inflation.

This market is pure speculation now. Remember the housing market in and mortgage backed securities in2005?

Every Libtard I know tells me the market is on firm footing and not built on a housing bubble. I remind them that Bawney Frank and a couple of crooks were responsible for the last one and that a negative growth economy cannot drive a 14000 dow. Yea something is going to give.

Think about it in real dollar terms

in 2000 we hit dow ~11,500
in 2013 with dow 14,000

Our dollar is worth ~70% of what it was in 2000.

Whats your RTI for those 13 years in real dollar terms ?

Another bubble ready to burst.

Is anyone else thinking that this house of cards is coming down very soon?
I am considering getting rid of all my stocks this week, and moving into money market or bonds for a while. Not expecting to make much at all doing that.
If I move into bonds, I have the option to get back into stocks without penalty when I believe the market has bottomed out.
If anyone has other ideas, I'd like to hear them!

I'm about of the notion that we need to kick this war off and get it over with.

What war?

International shipping is down about 20% from its 5 year average.

Back in summer of 07 I started selling my stock and mutual funds at opportune spikes, going to cash. I was a bit early but was satisfied to wait for a spell and along came fall/winter of 08. Loaded back up on select stocks and am now going back to cash and will be by the end of this month with no plans to ever return back to the mkt.

Ya'll can have it all and I do feel deeply for the younger guys and gals out there for what is ahead of them in their needs to accumulate for their futures. This ain't your Mom and Dad's economy anymore.

Gfy

Wow, you show up everywhere where a stupid post is needed. Another priceless gem by a guy with a chip on his shoulder and no doubt hasn't got a fair shake in life. Perhaps you're more effective protecting harmless wolves, no I take that back you don't do that we'll either.

This might be an interesting read for you:
http://www.mauldineconomics.com/outsidethebox/2013-investment-themes



I too am getting ready to shift most of our holdings out of stocks. It is just a matter of when.

With regards to investing your hard earned money . . . I am 60 years old and have only been seriously investing for a little over a year. So take my opinions with a grain of salt.

I grew up somewhat familiar with the stock market. My dad (child of the Great Depression) was a very successful investors and read the stock tables every morning in the newspaper. I couldn't make hide nor hair out of them and soon lost interest. My dad would buy us boys some stock and show us how it was growing, and give us some "dividend" payments from time to time to try and spark an interest in the concept of saving and investing. His limited but consistent advice was "always pay yourself first."

Well I never did follow my dad's advice. A year ago, when I finally came to my senses and realized I had wasted my entire life making and spending my money, and saving very little, I panicked and started subscribing to several investing newsletters and reading a few investing books to try and educate myself. All of these publications had one thing in common . . . they all touted the philosophy of "buy low and sell high."

A friend of mine at work introduced me to another concept . . . "Buy high and sell higher," authored by Investor Business Daily founder William J. O'Neil. Up to this point I was simply using my gut instinct and a hope and a prayer to try and make the proper investment choices in my 401K and IRAs I opened for me and my wife. I was failing miserably and losing money. So I bought one of O'Neil most famous books (you can click the book photo for more detail):



For once, I realized you had to have a proven "system" to make money in stocks. I have since read several more of his books, subscribed to his paper and web site, and attended at least one workshop. I can 100% recommend his investment strategy (CAN-SLIM) as the near fool-proof way to make money and limit your losses (preserve investing capital.)

So I leave it with you to make up your own mind as to whether you want to read his book and follow his system. For me, a new investor with limited knowledge, I can say it is working for me and I find following stocks (U.S. companies as O'Neil recommends) is an enjoyable, stimulating endeavor which I feel I can do for the rest of my life and survive retirement.

One market driver is that this protracted period of ultra low rates has made it so painful to be in CD's/cash, that people are putting their money at risk in the market-- blindly in many cases, just to get some yield.
Historically, when irrational exuberance (for tech stocks, real estate, whatever) attracts large inflows, the correction comes.
Sadly, that's when folks with short time horizons or low risk tolerance pull back to cash- locking in the loss.

If we end up with inflation, rates will likely rise, hurting bond holders most.

Somewhat perversely, the market is the only place you can get some protection from inflation...

Catch 22.

I gleaned this good advice from your article:

"What is an investor to do, caught up in a not-so-slow-motion landslide like this? Gary gives us a �risk-on� list; but he emphasizes that it�s temporary, because the Grand Disconnect is unsustainable � the next significant macroeconomic shock could plunge us right into risk-off mode, and we must be nimble, lest the Grand Reconnect catch us unawares."

I have learned from William J. O'Neil that you have to watch your investments on a daily basis. Have concrete sell rules to limit your losses and preserve capital. Invest only in a confirmed market uptrend. Follow institutional investors buying only within 5% of a proper buy point.

While the market is soaring I'm all in. If it declines I'm out. If you do what this gentleman recommends . . . be nimble and aware of what is happening . . . you'll be fine and richer for your effort.

Yes if people are worried about inflation, stocks have proven to be one of the best investments in inflationary times.

looks like to the top 2% are going to move up...where do they go?