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Warning Signs Flash as Stock Market Soars to Records
Wall Street Journal ^ | November 3, 2013 | By Gregory Zuckerman

Posted on 11/03/2013 10:28:47 AM PST by Brad from Tennessee

For some investors, it feels a lot more like 1999 than 2013.

Third-quarter earnings have not been spectacular. The U.S. isn't expected to grow at anything close to breakneck speed next year. And there are few industries experiencing huge profit expansions.

Despite all that, a number of high-profile—mostly technology—stocks are soaring. The heady advances are making shareholders of these companies big money, but they're also raising serious questions among some analysts about whether the unusual trading is a troublesome sign for the overall market.

Last week, the Dow Jones Industrial Average set a record on Tuesday, but closed up just 0.29% for the week. The Standard & Poor's 500 stock index also set a record and rose 0.11%.

So far this year, the Dow has climbed 19%, the S&P 500 24% and the Nasdaq 30%.

================================================================================================================

. . .the recent gains in tech shares are reminiscent of the Internet-led bull market that created huge fortunes but ended in 2000 when the small group of expensive technology stocks that had powered the market higher suddenly collapsed, pulling the entire market down with it.

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


TOPICS: Business/Economy
KEYWORDS: prepping; shtf; stockmarket; warningsignals
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1 posted on 11/03/2013 10:28:47 AM PST by Brad from Tennessee
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To: Brad from Tennessee

bump


2 posted on 11/03/2013 10:29:43 AM PST by WashingtonSource
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To: Brad from Tennessee

When your currency is debasing, stocks will be expressed in terms of ‘more dollars’.


3 posted on 11/03/2013 10:30:44 AM PST by Lazamataz (Early 2009 to 7/21/2013 - RIP my little girl Cathy. You were the best cat ever. You will be missed.)
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To: Brad from Tennessee

Money taken out of the market will go where, real estate? Commodities? Mattresses?


4 posted on 11/03/2013 10:33:40 AM PST by Argus
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To: Argus

China.


5 posted on 11/03/2013 10:34:40 AM PST by CivilWarBrewing
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To: Argus

And so will taxes. But pensions will be paid in fewer dollars. Problems are being solved without anyone being the wiser.


6 posted on 11/03/2013 10:35:36 AM PST by poinq
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To: poinq

What problems are being “solved”?


7 posted on 11/03/2013 10:37:28 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

Unfunded liabilities will draw less because of a devalued dollar.


8 posted on 11/03/2013 10:40:47 AM PST by deadrock (I am someone else.)
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To: Brad from Tennessee

“The U.S. isn’t expected to grow at anything close to breakneck speed next year.”

How can you do that if your population is at minimum or slightly below replacement levels in its fertility rate?

We don’t manufacture our citizenry like we used to and we sent most of our manufacturing of goods overseas. Only 12% of the economy is manufacturing-based.


9 posted on 11/03/2013 10:41:26 AM PST by Jack Hydrazine (I’m not a Republican, I'm a Conservative! Pubbies haven't been conservative since before T.R.)
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To: Brad from Tennessee
It's been doom and gloom for the past 6 years so sooner or later one of these idiots will be right!
10 posted on 11/03/2013 10:42:09 AM PST by america-rules
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To: Argus
[Money taken out of the market will go where, real estate? Commodities? Mattresses?]

You didn't mention precious metals but you didn't have to. In comparing 5-year charts for Gold and the DOW, stocks win.

11 posted on 11/03/2013 10:42:50 AM PST by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: Argus

Money will not be taken out of the stock market, some will leave the bond market which is for suckers. Stocks around the world will likely keep their inflated value while other things like bonds will be locked into current values. Commodities will be limited by word GNP. Some other things will go up, like stuff for the very wealthy.

Keep you expenses low and keep your stocks.


12 posted on 11/03/2013 10:43:29 AM PST by poinq
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To: Red in Blue PA

government debt.


13 posted on 11/03/2013 10:44:25 AM PST by poinq
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To: FReepers
I Found Your Wallet And Donated!


Click The Pic To Donate

Support FR, Donate Monthly If You Can

14 posted on 11/03/2013 10:49:10 AM PST by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: Lazamataz

“When your currency is debasing, stocks will be expressed in terms of ‘more dollars’.”

Exactly - the difference between now and 1999 is that in 1999 the Fed was not pumping in $85 billion of new base money every month. When I sell my bond to the Fed, I immediately have to start looking for something to do with that money - some other investment - and stocks are definitely at or near the top of that list. Does it create a bubble? Yes. And when will that bubble pop? When the Fed starts cutting back. And when will that be? Who knows... but what has become clear is that investing is no longer about studying the financials of a company, but studying the politicians and bureaucrats in DC.


15 posted on 11/03/2013 10:50:46 AM PST by aquila48
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To: Brad from Tennessee

We enter the time of year where shorts find themselves curled in a fetal position on the floor while everyone else is having a good holiday time. Ask me how I know.

The market has retail investors exactly where it wants them: The market seems very toppy and there isn’t exactly any kind of Macy’s 20% off sale going on. No. You have to rush down to Macy’s at a 1/37th of 1% off sale. The only thing to do is to “already be long”. The number of traders who have beat simply buying and holding SPY (the SP500 index etf) or equivalent with ZERO trades all year is so close to zero it’s not even worth talking about.

The market has withstood each and every glitch thrown at it. End of the world, end of Italy, crappy (un)employment numbers, stagnant GDP numbers, the prospect of consumers getting smoked on their healthcare premia and thus not being to splurge on Chinese crap over Xmas. Instinctively, the dollar should be weakening on QE-forever, but the ten year is back to the 2.5-2.6% area (down from threatening 3% mere weeks ago) and oil is literally crashing.

Very little makes sense, but “making sense” is not “making money”.

Personally...I believe (and...”belief” is not a fundamental) that the market is actually applauding the intensified fascist/corporatist state.

I really have no specific reco. Buying on dips has worked EVERY TIME over the past 4 years. That’s an observation, not a reco.

I can’t see any good reason NOT to buy SPYders and leave it alone. “Reason” is not operative. The Fed cannot abandon its stance. The mere threat of such drove the DJ down over 1000 points about a month ago. I think we are living in a synthetic environment and it kind of reminds me of the period right after 9/11/2001. The US kind of shut down. Gradually, folks poked their heads out from under their rocks. The ones who did so first, benefitted most. In a far more slo-motion way, I think we are in roughly the same position, though later in the scenario. Like it or not, we have 3 more years of 0bama, and his best advertisement is the relentless rise of the stock market despite truly lackluster economic performance. I acknowledge that unlike that point in time, the market is not now depressed. Indeed it’s at AT highs.

The only thing I can not seem to convince myself of is that there is a reason for this to stop. I don’t see it. I don’t see the preference for the cash that would result from selling stocks. I sure don’t feel it, the charts don’t say it. But bull, bear, skeptic or fanatic, you can never, ever be short during T-giving > Xmas. Never.


16 posted on 11/03/2013 10:54:16 AM PST by Attention Surplus Disorder (At no time was the Obama administration aware of what the Obama administration was doing)
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To: Brad from Tennessee

When the stock market collapses and the fiat currency is worthless, you will wish you had gold.


17 posted on 11/03/2013 11:14:31 AM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: Brad from Tennessee

All that “Quantitative Easing” is going into inflating stocks...nothing else.


18 posted on 11/03/2013 11:27:16 AM PST by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: Brad from Tennessee
I've been investing in stock since the mid 1980s and even back then, you had the know-it-alls chortling that the bottom was about to fall out and that all those Wall Street types would get their comeuppance and that I would be much better off buying bricks of gold with my money and burying them under the floor in my basement.

Even back then, the whole "buy gold" argument puzzled me. If the U.S. dollar was really so worthless, then why were all these traders so willing to accept these "soon to be worthless" dollars in exchange for their precious gold bars?

Furthermore, if the doomsday predictions ever came true and the U.S. economy suffered a total collapse, then how would I go about using all those gold bars that I stored up? Would I take a gold bar down to the corner store to buy milk and bread? How would I get my change?

Lastly, if I ever showed up at the corner store with a bar of gold, how likely would it be that somebody would follow me home? I would say very likely.

I guess someday the gloom and doomers will be correct but in the meantime, I've been doubling my net worth on average about every 6-7 years with the stock market (rule of 72 principle combined with dollar cost averaging).

19 posted on 11/03/2013 11:38:46 AM PST by SamAdams76
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To: Brad from Tennessee

I’m sick of this “DOW’s up, DOW’s down” crap. Fluctuation is normal.
Amounts that are not adjusted for the loss of purchasing power of money are meaningless.


20 posted on 11/03/2013 11:40:18 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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