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With Stocks at Record Highs, What Could Go Wrong?
Wall Street Journal ^ | 06/02/2014 | By GREGORY ZUCKERMAN

Posted on 06/02/2014 6:42:24 AM PDT by SeekAndFind

The S&P 500 is up nearly 10% since its 2014 low in the first week of February. The index, which tracks the largest stocks, is now at a record high, up 4.1% for the year.

Behind the rebound is a view that stocks will continue to benefit from robust earnings, low interest rates and scant inflation. If those conditions persist, the market's climb could very well continue.

But it's important to examine the issues that have the worrywarts up at night and the justification bears have for their downbeat outlooks.

Below are some critical investor concerns, with a 1 to 10 "worry level" ranking.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Society
KEYWORDS: bubble; dow; sp500; stocks

1 posted on 06/02/2014 6:42:24 AM PDT by SeekAndFind
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To: SeekAndFind

History shows that Keynesian economic policies are akin to a drug fix. Eventually and inevitably the crash will come. Obama and his economic “advisers” are just hoping the big crash doesn’t occur until 2017.


2 posted on 06/02/2014 6:46:28 AM PDT by allendale
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To: SeekAndFind

China housing/construction bubble bursting is the biggest threat on my “black swan” radar.


3 posted on 06/02/2014 6:48:43 AM PDT by Wyatt's Torch
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To: Wyatt's Torch

Obamacare “bust” and bailout of insurance companies caught in the medical insurance squeeze is a closer and more immediate threat.

Of course, there is no “bailout”. Yet.

But it’s coming, like a runaway locomotive.

What could POSSIBLY go wrong?


4 posted on 06/02/2014 6:53:24 AM PDT by alloysteel (Selective and willful ignorance spells doom, to both victim and perpetrator - mostly the perp.)
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To: SeekAndFind

First, adjust the numbers for inflation. Then tell me is the stock market is up.


5 posted on 06/02/2014 7:03:36 AM PDT by I want the USA back (Media: completely irresponsible. Complicit in the destruction of this country.)
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To: alloysteel

OK, so I’M sitting on cash and have been for about 2 years. I can’t get a yield on it and now it looks like inflation is setting in. Can’t go to equities since they’re going to crash. \\

What to do?


6 posted on 06/02/2014 7:25:32 AM PDT by Stand W ( You can't fight in here! This is the War Room!)
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To: Stand W

....ALL equities aren’t going to crash at the same time...


7 posted on 06/02/2014 7:39:05 AM PDT by Dr. Pritchett
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To: SeekAndFind

As of now, there’s really no other place for investors to park their money.


8 posted on 06/02/2014 7:41:57 AM PDT by 9YearLurker
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To: Stand W

RE: OK, so I’M sitting on cash and have been for about 2 years. I can’t get a yield on it and now it looks like inflation is setting in. Can’t go to equities since they’re going to crash. \\

What to do?

________________________

What about considering stocks or ETF’s that have long term history of stability and providing good DIVIDEND YIELDS?

Have a look at this ETF for instance: SDOG


9 posted on 06/02/2014 7:44:51 AM PDT by SeekAndFind
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To: Stand W

Normally it would be gold but it’s off 10% since March...


10 posted on 06/02/2014 7:49:37 AM PDT by Wyatt's Torch
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To: I want the USA back

Maybe not even for “inflation”,

but adjust it for “money supply” and you’d see a huge downward graph.


11 posted on 06/02/2014 7:50:37 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

Worry Level 10 = we know the stock market is rigged to screw the little guy and benefit our corporate overlords.


12 posted on 06/02/2014 8:22:17 AM PDT by gdani (Every day, your Govt surveils you more than the day before)
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To: SeekAndFind
SocGen's Black Swan Chart:


13 posted on 06/03/2014 6:55:52 AM PDT by Wyatt's Torch
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