[Skyhook]

"It's the ECONOMY, stupid!"-- Who said then and when did they say it? Never mind, this lurking disaster is not news to most here who follow such things... but the bad news is, a correction of that magnitude is absolutely certain to hurt just about every American. I doubt I'm wrong in this.
http://www.moneynews.com/MKTNews/bil...source=taboola

"Billionaires Dumping Stocks, Economist Knows Why"

"
It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

[JBnTX]

Somebody needs to let the stock market know?
It seems to be headed in the wrong direction.

..

[Skyhook]

Originally Posted by JBnTX

Somebody needs to let the stock market know?
It seems to be headed in the wrong direction.

..

Oh, I think it will get the message.
"It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

[series1811]

Originally Posted by Skyhook

Oh, I think it will get the message.
"It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

It's funny that there are actually people who think that printing massive amounts of money doesn't affect anything in the economy.

But, there are.

[SPIN2010]

... and sudden destruction came upon them. Man falls for it everytime in greed of all.

[aircarver]

Being 'governed' by 52% know-nothings sux !

.

[aircarver]

Originally Posted by series1811

It's funny that there are actually people who think that printing massive amounts of money doesn't affect anything in the economy.

But, there are.

... and they're in the position of running things ! ...

.

[Bruce H]

This is why I have been positioning myself for just this senario. Absolutely no debt. Sufficient supplies to last a year if necessary. As in food not doomsday foolishness. When it tanks those with just enough income to cover bills will be in deep fecal matter.

Still have the farm which could have been converted to cash that the government would have wanted half or better of the return. Have a place to live and raise food. Enough cash to pay taxes.

[stevelyn]

Originally Posted by JBnTX

Somebody needs to let the stock market know?
It seems to be headed in the wrong direction.

..

Nope. Let it crash and burn. It needs to. Hopefully every last one of them responsible get burned to ashes.

[Cavalry Doc]

Originally Posted by stevelyn

Nope. Let it crash and burn. It needs to. Hopefully every last one of them responsible get burned to ashes.

Ashes? That sounds ominous.

I'm thinking that regardless of what happens, those with hige debt and undisciplined spending will do better than those that have saved and invested on average.

It will be interesting to watch.

[walt cowan]

Originally Posted by JBnTX

Somebody needs to let the stock market know?
It seems to be headed in the wrong direction.

..

the fed is holding it up but, hey! it's only money right?

[PhotoFeller]

I think it was Greenspan who talked about "irrational exuberance" in the past when stock prices ran up so high while the economy didn't support the investor confidence. A DJIA above 14,000 seems irrational to me, so a huge correction wouldn't be shocking. But what do I know since I got my butt kicked in 2008's meltdown.

[beforeobamabans]

If you believe in technical analysis (and I do since it is simply a proxy for human psychology), we are finally re-testing the previous high before the March 2009 low. We've come straight up from S&P500 660 to 1520. These "V-bottoms" are NEVER left untested. The March 2009 low will be retested and the fundamentals of a second Obama administration support this to a 'T'. It ain't 90% but a 50% retracement from this high would be well within most technicians' definition of normal. So, S&P 750 is a real possibility.

Note to blind optimists ala JebinTX: High flyer AAPL could do no wrong a few months ago, now it's down 40% even though its fundamentals are still strong. I think AAPL is giving everyone a loud warning. Can you hear it?

Short the S&P 500.
Short US Treasuries (TBT e.g.)

[jeanderson]

Originally Posted by Skyhook

... but the bad news is, a correction of that magnitude is absolutely certain to hurt just about every American.

Every American that is in the stock market. I pulled all of my retirement (401K) funds out of the market last year and parked it in cash. Yeah, I lost out on the latest gains. But, if you try to time this you'll get burned. Better safe than sorry - get out now!

[JBnTX]

Originally Posted by jeanderson

Every American that is in the stock market. I pulled all of my retirement (401K) funds out of the market last year and parked it in cash. Yeah, I lost out on the latest gains. But, if you try to time this you'll get burned. Better safe than sorry - get out now!

I did the same thing!

At this point in my life, keeping what I have is more important than making more.

[Skyhook]

Since I am absolutely certain, from what we've seen in the past, that no matter where citizens place their cash, the government will eventually fins a *legal* path to it, I am likely to listen to a friend advises sinking considerable funds into 'hard investments'.. and if I knew what the heck he is talking about, I'd do it.

Anyhow, fat bank accounts will tempt those bureaucrats to the point they will all require froth bibs and drool cups. Until they can find a tunnel into the vault, that is.

We have seen the enemy.

[Cavalry Doc]

Originally Posted by JBnTX

I did the same thing!

At this point in my life, keeping what I have is more important than making more.

Just remember, in the case of hyperinflation, all those mason jars of cash will be becoming worth less and less very quickly. Stuff. Buy Stuff.

[certifiedfunds]

Inflated currency generally has a positive effect on the market.

Buffett bought hugely in the 08 downturn and has significant gains. I suspect he would love to see another dramatic correction.

A correction is coming. No one debates that. 90%?

It sure is starting to look like a bubble to me.

[Flying-Dutchman]

Originally Posted by Cavalry Doc

Just remember, in the case of hyperinflation, all those mason jars of cash will be becoming worth less and less very quickly. Stuff. Buy Stuff.

Unless its pre-1965 90% silver in those jars.

Obama’s second term victory guarantees a financial crash.

America always does things in a big way and this crash will be the mother of all crashes.

Most of us here have never experienced really tough times. We will get that chance.

[Z71bill]

Watch Japan - they are the canary in the coal mine.

They are going all in on QE - it will pump things up for a while -

I keep seeing the image of a B-52 - engine on fire - so the pilot does a deep dive - trying to get up the speed to put the flames out - risking breaking apart or the crash into the ground.

May work - may break apart - may crash

[certifiedfunds]

Originally Posted by JBnTX

I did the same thing!

At this point in my life, keeping what I have is more important than making more.

If inflation takes off you're gonna be eating dog food.

[jeanderson]

Originally Posted by certifiedfunds

If inflation takes off you're gonna be eating dog food.

If you keep your money in cash throughout a long period of inflation, it is true you will lose money. But inflation will not double the price of everything overnight. However, the stock market can drop like a rock in a day or two and you will lose your money before you know what hit you.

[Skyhook]

Originally Posted by jeanderson

If you keep your money in cash throughout a long period of inflation, it is true you will lose money. But inflation will not double the price of everything overnight. However, the stock market can drop like a rock in a day or two and you will lose your money before you know what hit you.

That's the really scary part.

Is there anyone who remains unconvinced of the crookedness and crass manipulations of the stock market?

Once, before I grew up ( sometimes think I really did) I was convinced that the Stock Market was an honestly-run business endeavor... I do not cling to that illusion any more; I have witnessed too much.

[kirgi08]

Originally Posted by certifiedfunds

If inflation takes off you're gonna be eating dog food.

Not if/when.Not us mind.Life has choices,I prefer food over fluff.Most folks have plasma/HD type home appliances.



We tend ta eat well.'08.

[Cavalry Doc]

There are always different ways to look at something.

Time to Re-Think Role of Stocks in Retirement
Stocks in Retirement may be your best Inflation Protection


It's a gamble, but I moved a chunk of money out of stocks and into treasuries last week. I'm thinking a 5 year high is a good time to take some profit. Also, I see that the fundamentals are dismal, and sentiment may follow for a while. If there is a large drop in the stock market, I'll try to time the bottom and throw all that money back into stocks.

It's money I can afford to gamble with. It's not my only planned income during retirement, which is still about 20 years away still.