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In spite of the FACT of in dept articles throughout the web, there is very little talk by the talking Heads about the biggest threat to the Global Economy, scam derivatives. Instead all we hear is about Government Shutdown, ACA, and other issues. Those issues pale in comparison to the Derivatives issue.
Unfortunately this article is full of over simplifications Lately momentum investors have made great returns - look at Netflix, Amazon and Tesla. Facebook may soon join this group. These stocks all trade far above any reasonable long term valuation. This shouldn't happen, but it does. Bonds and Bond funds can be good or bad investments depending on duration, interest rate and fund leverage. An investment today in Build America Bond funds will return about 8% while an investment in 10 year Treasury Bonds returns less than 3%. In my opinion there is very little interest risk at 8% and BABs are a good risk, especially in a diversified fund. If you have a bad stock and you hold it and it comes back you are a hero, if it goes bust you are stupid. When experts disagree on a stock an individual can only hope they are following the best advise. If you want an example read up on the history of Cedar Fair or just look at Face Book right now or better yet look at the history of Apple. All any investor can do is learn as much as possible, consider as many other points of view as possible and try not to trade out of either FEAR or GREED.
Interesting thought came to mind as I was browsing these comments. Theoretically speaking, over the next ten years I could save up enough cash and contribute enough to a 401K, that has done pretty well; to quit my job, withdraw my 401K, pay off my house, car and any remaining school loans and thereby making me debt-free and outright owner of my house and car. My remaining monthly bills and taxes would total approximately $15k per year which a simple part-time job should easily cover...
...and thus meaning I could retire at age 40! This is absolutely mind-boggling. Anyone see a reason why I shouldn't shoot for this goal other than the fact that I won't be making $100k/year for the sole reason of making $100k/year?
As the SuperRich are selling their stocks by the Truckloads, they are telling everyone else to buy in. As the Mega Corporations are selling Record amounts of Debt, they are telling everyone to buy in. As Uncle Ben and the Global Feds print to Infinity, they are telling everyone that's things are getting much better. The Talking Heads are misleading us about China, Japan, Euro-Zone, and America.
We can't have soaring National Debt, Student Loan Debt, FED balance sheet Debt, Corporate DEBT, Global Debt, along with stubbornly high Crude prices and not expect eventually stocks to take a major hit. Investors are being led to think that future stock markets gains will be just like the last few decades. Markets can also be like the the decades before when Stock Markets went practically nowhere for decades.
Since it's literally impossible to predict the exact date and or come anywhere close, most folks will fall back on, well it recovered before. Well before we didn't have printing to Infinity, massive Derivative exposure Globally, and more Computers trading than Real People. I fully expect it will be much worse than nowhere for decades when this Big Bear does eventually arrive. And it will. However this time around, the FED will be taped out and investors won't be rewarded for being patience and waiting out for a New Bull Run. Most will be totally wiped out.
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[BRIEFING.COM] The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.
Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities ... More
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