VIDEO ON MSN MONEY
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.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages began the new trading week on a slightly lower note with small caps leading the weakness. The Russell 2000 shed 0.3% while the S&P 500 slipped less than a point with six sectors ending in the red.
Equity indices began the day in negative territory with only the Nasdaq (-0.04%) making a very brief appearance in the green. After sliding through the first hour of action, the major averages reversed and spent the remainder of the session climbing off ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'