And everyone loves inflation for now. Scary times ahead folks...

That is quite a telling number...tells one a lot of things to people with a brain.The libs unfortunately equate a high dow number with a strong economy.

Inflation is the only reason it's that high.

Happy Days Are Here Again!

of course a dropping Dow is a sign of a failing economy. So, apparently no matter what the Dow does .... It's Obama's fault.

You are the only one who mentioned Obama, grow a brain.

Oh wahhhh!

Feds pumping $85 Bil a month into the market surely has nothing to do with it.

If Obama wanted to cut spending and cut taxes - he could have all the credit. Since he doesn't want to do that - shouldn't he get the blame???

I see you are bleeding from that gash between your legs again.

QE 1, 2, & 3, record low interest rates and a fed balance sheet that has increased 600%+ over the last 4 1/2 years. You don't think inflation is real, then I can't help you.

BTW it is not Obama's fault, he shares the blame with the Fed and the rest of the ass holes in Washington.

My question is were to place my bets with my 401k. I have quite a bit in an inflation protected bond fund. Not sure treasury bonds are safe these days even if they are inflation protected. Just moved more into international funds today.

I've felt like stocks have been artificially high for a while. Is it time to park it all in a money market fund? I parked it all in mid 2008 and it worked out well. I didn't lose hardly anything in the big crash. Unfortunately I left it parked a little longer than I should have.

I can borrow half of it and make payments with interest to my own account. I've thought about doing that and buying silver again.

Bb

Exactly. It's inflation. Eggs and milk are up, too.

Last year was good and I suggest that this year will be as well.

How did the Dow reach 14,000? Who benefited? Who are the losers?

Nearly every pension fund in the nation is heavily invested in the market. If the market falls, everyone in our nation who's relying upon a pension will be harmed. Therefore, politicians on both sides of the aisle will stop at nothing to prop up the market, even if the market's actual value is illusory.

The market is now the game of the wealthy. The rich are making lots of $$$, and the rest of us are paying for it right now. Inflation resulting from the Fed's printing funny money in order to fund QE's 1, 2, & 3 has forced us to pay more and receive less. And our children and their children will pay the tremendous debts of the QE's.

The market, like all stretched bubbles, will burst.

Soaring Dow

Those numbers are fluff, bunghole bernankee is printing worthless money 24/7/365.

Gunner

That's okay. As long as they don't get taxed for it, all is good.

Liberals can't ever tax enough.

When I ask them how much is enough, none of them can answer other than mumbling about paying your "fair share".

Elections matter - we will all see soon enough!

The DOW at 14K doesn't reflect the state of the economy like it used to. The federal government is involved in many more companies than it used to be either by direct ownership (GM) or billions of subsidies like the alternative energy groups.

Also the DOW is a group of 30 companies that have multi-national status and heavily involved in commerce all over the world.

We'll all see soon enough how healthy the economy is!

Don't usually agree with your posts but this one is spot on.

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?

Land gold and guns are the traditional inflation hedges.

Market corrections can be, have been, and will be devastating on occasion.

We all know this current market number is based on Fed printing presses running wide open, and that hyperinflation is the way Republics fail, so see the first line of my post again.

He is a college professor therefore he cannot so he teaches.

They don't "teach", they indoctrinate nowadays. This just follows the communist protocol.

Obama says it's Bush's fault..............

It is a matter of about a dozen left clicks and I am fully out of the market in a day or so. I have done it, and more than once. Finished up 14% last year and am at a click over 4% YTD 2013. Housing, transportation, automotive have and are good, China is now in the mix now as is Australia/Indonesia. I believe there is still money to be made in 2013.

U.S. stock momentum stalls on pullback concern

MARKETWATCH 8:58 AM ET 2/13/2013

Symbol Last Price Change
GE 23.39 +0.81 (+3.59%)
CMCSA 39.91 +0.94 (+2.41%)
MCD 93.97 -1.13 (-1.19%)
KO 37.12 -0.44 (-1.17%)
DE 90.7 -3.27 (-3.48%)

QUOTES AS OF 03:26:17 PM ET 02/13/2013

SAN FRANCISCO (MarketWatch) -- U.S. stocks pulled back on
Wednesday as some investors anticipated an overdue correction
to a market that has run up to multi-year highs over the past
several weeks.

The Dow Jones Industrial Average fell 63.10 points, or 0.5%, to
13,955.60, after venturing higher to 14,029.35 earlier in the
session.

General Electric Co. (GE) was the biggest gainer on the Dow,
with shares up 3.3% to $23.32, following an announcement it
would sell the rest of its stake in NBCUniversal for $16.7
billion to Comcast Corp.(CMCSA) . Comcast(CMCSA) and GE were
among the top gainers in the S&P 500.

A significant drag on the price-weighted index, however, was
shares of fast-food giant McDonald's Corp(MCD). Shares dropped
1.3% to $93.91. Coca-Cola Co.(KO) shares were the Dow's worst
performer, down 1.4% at $37.05. While there was some
speculation that a call from President Barack Obama to raise
the federal minimum wage to $9 an hour from $7.25 weighed on
McDonald's(MCD) shares, analysts generally dismissed it as
being a factor.

Following a 6% run-up in markets in January, stocks over the
past week have traded mostly sideways, as investors anticipate
some sort of correction.

Those investors are most likely the ones who missed out on the
December-January rally following a surprisingly positive
earnings season, said Brian Belski, chief investment
strategist at BMO Capital Markets.

"It's really important to say that people looking for a
pullback are the ones who missed the move [up] in the first
place," Belski said. "It's increasingly dangerous to be
diagnosing short-term market moves."

Still, investors aren't seeing the momentum from the prior
session, when the Dow rose 47.46 points, or 0.3%, to close at
14,018.70, a five-year high.

The S&P 500 index fluctuated between slight gains and losses,
falling 2.09 points, or 0.1%, to 1,517.34, in recent activity.
The index touched an earlier intraday high of 1,524.70, with
financials and telecom stocks the biggest losers and
industrials and materials the leading gainers among the 10
major industry groups.

The Nasdaq Composite Index flirted with going negative, gaining
2.23 points, or less than 0.1%, to 3,188.72, in recent
activity. The Nasdaq index touched an intra-day high 3,205.52
earlier.

Whether market momentum will continue or result in a sell-off
is hard to predict. Much of the smart money has boosted long
positions into equities lately, according to a recent report
from Bank of America Merrill Lynch.

"You're seeing lots of macro hedge funds more allocated toward
stocks," said Bill Stone, chief investment strategist at PNC
Wealth Management.

While investors who missed out on the rally may be the ones
hoping for a pullback, the fact that a pullback hasn't
happened in a while is difficult to ignore.

According to Stone, the broader stock market has gone 60
trading days without a 5% pullback, and 342 trading days
without a 10% pullback. That's compared with an average 49
trading days for a 5% pullback, and 161 trading days for a 10%
pullback, using data going back to the 1920s, Stone said.

Along those lines, not only did Goldman Sachs downgrade its
short-term outlook on stocks earlier in the week but UBS is
saying that stocks are overbought. Read: Another canary in the
coalmine saying near-term stock outlook is shaky.

Advancing stocks outpaced decliners about 16 to 14 on the NYSE,
while decliners outnumbered advancers by 12 to 11 on the
Nasdaq. Composite volume for NYSE-listed stocks topped 2.5
billion shares, and 1.4 billion shares for Nasdaq-listed
stocks.

Before the opening bell, data showed that U.S. retail sales
rose a seasonally adjusted 0.1% in January, which was broadly
in line with expectations. The data indicated that a tax
increase at the beginning of the year has started to affect
consumers.

In Washington, President Barack Obama delivered the State of
the Union address on Tuesday evening. The president called on
lawmakers to come together and end the "manufactured" crisis
over the federal budget deficit, while also urging Congress to
raise the minimum wage to $9 an hour from the current $7.25
rate.

In other corporate news, Deere & Co.(DE) said
fiscal-first-quarter earnings rose to $1.65 a share from $1.30
a year earlier. The company's shares, however, dropped 3.1%.

In the bond market, yields on 10-year Treasury notes rose five
basis points to 2.03%, following a $24 billion auction of
10-year notes at a yield of 2.046%.

It's a house of cards and deception. Steer clear IMO.

I'm with you, all cash in my retirement fund now. %4 in one month is pretty nuts, I'm locking in those gains. If I can make another 6% the rest of the year I'll be happy. That's RTI, not including what I'm adding in.


If I can keep it up and turn it into enough rental properties, I can retire pretty well in another 6-8 years(45 now).

In a market/economy like this, trailing stops work well for your stocks. Multiple "left clicks" are far too slow nowadays with the hyper-programmatic trading platforms that are being used by the big boys and girls.

edited fer spellun.