Posted on 10/27/2014 5:54:39 AM PDT by blam
Henry Blodget
October 27, 2014
Fund manager John Hussman of the Hussman Funds has been one of the most vocal bears on Wall Street for the past few years.
The market has continued to rise strongly in the face of these warnings, which has clobbered Hussman's reputation and performance. But those who are loud and early/wrong on Wall Street are always ridiculed ... unless/until the trend changes. At that point, they become one of the heralded few who were "right."
For the past six months or so, Hussman has been increasing the volume of his warnings about a potential market crash.
In this week's note, Hussman shares his view that the market's sharp rally over the past seven trading days is not likely the resumption of a rocketship bull market that began in 2009, but a standard bear-market rally.
Specifically, Hussman believes that the market rolled over a month ago and is now in the process of crashing.
Hussman correctly observes what many investors forget, which is that market crashes don't happen in straight lines down. Rather, they generally consist of sharp plunges followed by sharp rallies followed by deeper plunges followed by rallies ...
(snip)
(Excerpt) Read more at businessinsider.com ...
Bump.
Even a blind squirrel finds a nut every now and then.
Yeah, except there at $10 TRILLION dollars sitting on the sidelines and the only place to put it right now is in stocks. Certainly not gold or commodities, certainly not China or Russia.
Translation: he’s short on all the BRICs and wants to be able to collect soon.
For those who follow the Fed's daily intervention in the stock market, today is a historic, if bittersweet day: this is the day when the Permanent Open Market Operations (or POMO) as a result of the QE3 program launched in December 2012, finally die (at least until they are reincarnated yet again). Today, at 11:00 am, the NY Fed's market desk will conclude its 933rd POMO since August 25 of 2005, when it will inject just about a $1 billion in the stock market in the form of a $0.85-$1.05 billion buyback of long-end bonds. And with that, Simon Potter's open market operations desk located on the 9th floor of Liberty 33, will be put on temporary hiatus.
When we enter a bond bear market, money will flow to stocks and drive the stock market higher - until it has the largest failure in history, wiping out the wealth of retirement accounts.
How will react to the end of QE?
We will never know....
SHUSH!! My Apple stock is going up! I need the money!
Val’s “human looking pupil” contact lenses must have been bothering her that day.
Left them in the bathroom.
a lot of mine is in PGP for the dividends. it pays .183 a month per share and the NAV has remained stable the last 5 years. I bought more when Gross left.
He’s a BEAR!! he WANTS the market to crash!!
Poor John. He still thinks there’s a stock market. Its been replaced by the Fed Market.
I'm just one of the "little folk". I have enough savings which at 4% interest would be supplementing my small pension pretty comfortably. The wisdom from all financial planners, including at the beginning of the declining interest rates, was to plan for at least that in safe FDIC insured accounts. It has to be a huge percentage of retirees who've been wiped out. They've put their money into annuities for the monthly income they need. They've gotten reverse mortgages. When they go, all of their assets are gone. (bet there's going to be some real surprised children and grandchildren) I wonder what will happen when some annuity companies go belly up.
I have one decent stock, which if I sell it, I have to pay a lot of tax. I lose out on the dividend....small, but more than interest on the money after taxes would be. So, what's my only option with that? At some point sell it, and parcel out the result into a fund for home repairs or taxes (or whatever) for a few years.
And the people who've kept their wealth because of the gov propping up the stock market? They're gonna' be just like the rest of us. They weren't very concerned about their peers either getting less than 1% interest or having to give up their savings, permanently, for a monthly check.
Did those with wealth to manage think any of them, except for a very well-off and connected elite, would be allowed to keep their wealth? They're next...but they can take their money before the market collapses, and if they're in the front of the pack, do quite well.
Grrr..... end of this rant. I'm not sure anyone knows what they're doing, beyond how to get through today.
I think there is a solution.
Just answer what steps you would wish you would have followed to prepare, if the worst comes. Then do them
Limit your list to only things that make sense no matter what happens.
Act while there is time to act freely.
The fraud is propping up the public pension fund schemes, looks good on paper, won’t last.
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