Posted on 02/15/2015 11:20:15 AM PST by Signalman
Stocks hit new records last week as central banks around the world continued writing checks to prop up still struggling economies, the price of oil stabilized, Vladimir Putin lured the West into a phony truce in the Ukraine, and Athens and the EU tried to pretend that Greece isn't hopelessly insolvent or that it even matters if it is or isn't.
In other words, investors were once again all too willing to ignore economic reality and drink the Kool Aid being served by central bankers and politicians.
We might as well call this the "Jonestown Market" because the cult leader Jim Jones could just as easily be handing out paper cups filled with colored water and investors would be swilling it down…
A Planet of Debt
Investors no longer require good news to cause them to bid up the prices of grossly overpriced equities. All they need is the promise that central banks will keep printing funny money to send them running to call their brokers.
And why not? This formula has worked great for the past six years. Why shouldn't it work again?
I will tell you why. Six years ago the world has much less debt than it does today. It was also much more stable geopolitically than it is today. It also had yet to create a bubble in the energy sector, the social media sector or the biotech sector.
With the Fed likely to raise rates before the end of the summer, the stock market is definitely not priced for what is coming. Investors should enjoy the party when it lasts because it is going to create one heck of a hangover.
(Excerpt) Read more at moneymorning.com ...
I heard where the market is yesterday and thought, “Oh man, those that think it’s recovered and it’s time to get back in are being suckered. It’s starting to look like a sine wave, and it’s on it’s zenith again.
You can’t time the market. People may think they can but ultimately they get burned.
I've been investing in the stock market since 1982 and I'm always being told that I'm being suckered in and that any day now, the house of cards will fall and I will then get my "comeuppance".
(Doom and gloomers are forever using that word..."comeuppance.")
It's now been 33 years and I'm still waiting...
Had I listened to the economic doom and gloom predictions surrounding Obama’s election, I would be considerably poorer today.
Federal funny money to Wall Street will ensure that the markets don’t crash for the remainder of Obama’s time in the White Hut.
After that, look out below.
Unless, of course, Hillary! is elected.
One of my college Professors taught me The Rational Man Theory Of Investing. He said the only problem is that no one uses it.
It’s now been 33 years and I’m still waiting...
The suckers that don’t really know what they are doing.
“Federal funny money to Wall Street will ensure that the markets don’t crash for the remainder of Obama’s time in the White Hut.
After that, look out below.”
If a Republican is elected, I am convinced there are plans in place to absolutely annihilate investors to the point the media talks 24 x 7 and blames the rich republicans for stealing your money. Bank on that....
When the market is at its peak is the prime time to get in if you follow the maxim of “buy high, sell low.” You buy when everyone else is selling. Of course, if it were that easy, we’d all have yachts.
My advice? Buy as often as you can and hold. Or if your investments leave you with sleepless nights, buy mutual funds comprised of the S&P 500 and leave it alone. Mutual funds are rated by how they perform against the S&P 500 and very few of them outperform the 500. So buy the 500 and sleep nights.
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