Posted on 02/18/2011 4:30:12 PM PST by The Magical Mischief Tour
In an unprecedented move, the number of investors fearing a catastrophic stock market crash is rising even with the stock market at 2 ½ year highs.
The unusual dislocation comes from two distinct reasons: a lack of trust in the U.S. financial markets following the so-called Flash Crash last May and the collapse of Lehman Brothers in 2007.
This means the Flash Crash Advisory Commission that met on Friday has a long way to go in restoring confidence to the point that will bring the individual investor back into a market still ruled by high frequency trading, exchange-traded funds and leveraged hedge funds.
The Yale School of Management since 1989 has asked wealthy individual investors monthly to give the “probability of a catastrophic stock market crash in the U.S. in the next six months.”
(Excerpt) Read more at cnbc.com ...
How can it be going up on such awful news? That alone makes it suspect. I think it is a big scam.
I think the unduly and overly optimistic stock market is in a bubble which is going to burst.
I think a major correction is way overdue and that correction could be as much as 500 or 600 points in one day.
It is really hard to know where to put your money - cash earns nothing and I am not confident in the market, although I have money in both.
Considering how much new money has been and is being “printed” the market should keep going up.
Bookmark
Two thoughts: You may not have been paying attention, but we just finished Q4 earnings season--US corporations are making healthy and sustained profits.
Second, remember the drivel from obama and other economic illiterates about corporations "sitting on trillions in cash?" Guess what. Nobody sits on cash at that level. Major corporations have been spending hundreds of millions and even billions to buy back their own stock, thus reducing the supply and shoring up the market price.
Yes the market seems to be ignoring bad news in the macro world, but this is a classic bullish indicator, not a cause for concern.
Because the Federal Reserve is depositing 6-8 Billion dollars of cash in big bank trading accounts most days. This is the ultimate government-issued funny money. Trading credits for the big boys. Should end by June. What do you think will happen then or October, at the latest? What do you think the big players will do with their shares when the end of the Fed-sponsored Wall Street party draws near?
They appear to be chucking it into commodities and chatting up “inflation” to support the ruse.
“restoring confidence...”
There’s a reason con-men are called con-men.
Is that why junk stocks are partying like it 1999? Not sure of the connection between profits of IBM or the ilk and the wild speculation involving almost every asset class. The explanation for all of it is free liquidity, not fundamental business issues.
Oh, thank you...For a while there I was sure the Wall Street was run by criminal insiders and super wealthy corrupt banksters looking for more suckers to draw in....
Now that I know it's perfectly safe from insiders and frauds, I'll dump a bunch of money in....
:o
The market by it’s nature is manipulated and has always been. The big boys look out at the future economic picture and then proceed to go thru their accumulation/markup/distribution routine. That’s why the market gets out of whack.
There’s a number of reasons the market’s going up, not the least being Bernanke’s Magical Money Making Machine running at full capacity. I’m seeing small cracks though starting to develop. I think we’re making the last big rush to the top to suck the public in so the pros can unload, and then the crash.
There’s a reason con-men are called con-men.
lol...They'll pull the rug out once enough suckers are standing on it.
From October 2010, FWIW....
Stock Market Rally October 2010 Due to Federal Reserve Influence
Commodities? Metals Silver, Gold, etc, have done well for almost a decade.....
Uh oh...I bet I just started the raining of fire and flame....
That would not really be much of a crash, would it? More like a minor correction, about 2%.
Just as a statistical matter, busts always occur after booms. Why don’t these geniuses tell us when it’ll happen? I’ll sell short!
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