Posted on 09/22/2014 11:52:53 AM PDT by John W
U.S. stocks fell on Monday, with small companies taking it on the chin, as China signaled it would not boost stimulus and after home sales unexpectedly declined in August.
"The comments from the Chinese finance minister were not particularly hopeful," said Cameron Hinds, regional chief investment officer for Wells Fargo Private Bank, referring to comments by Chinese Finance Minister Lou Jiwei that Beijing would not make big changes in response to one economic indicator, curbing thinking that softer economic readings would prompt additional stimulus from the central government.
(Excerpt) Read more at cnbc.com ...
Was Friday the top?
With the BABA Bubble?
So the Chinese government does not ramp up spending to prop up a stagnant economy. They are more fiscally responsible than us at this point.
This may not be anything more than a Monday sell-off. I do not know. The Casinos are filled every day with potential winners and losers. The losers far outnumber the winners.
Stocks
Commodities
Bonds
QE and bailouts have enriched the Banks, no one can invest in debt instruments, and commodities are all over the board.
The last refuge is the artificial stock market. If it implodes say good bye, there is only chaos ahead.
Da conomy B boomin’.
Next stop Wiemar Republic, Zimbabwe.
Thanks, global elites, for constructing a world where a dip in home sales in China can tank markets here.
Bunch of brainless putzes....
Gold kinda sucks lately too, doesn’t it?
On the other hand, my carefully chosen equities pay a 3% dividend. They pay this dividend even when speculators send their “price” lower.
It’s all good.
So, entry level buyers have been locked out of the real estate market because investors buy everything up in cash. Not only does it drive the prices up as the hedge funds compete to spend their FED dollars, but the banks are buddy-buddy with the investors and can sell 100s of homes to them to get them off of their books. This is great for both parties as the real estate market has been monopolized through this FED funded operation.
The hedge funds then rack up the rents and wait for the promised double digit growth to roll in. Unfortunately for them, the real economy is in a deflationary spiral and the guys who couldn’t afford to buy the inflated real estate can’t afford the inflated rents. Now some of the hedge funds are reconsidering the joys of being a land lord on thousands of units that are not providing cash flow and are downsizing their purchases, thus the plummet in home sales.
The FED will need to jack up the easy money to keep this going as the malinvestment approach may have juiced assets in the short term, but is unsustainable in the long haul. Good thing the banks and investment guys keep raking in the benefits of FED QE, right? The poor slob that just wants to live somewhere he can afford gets to continue to be locked out until the current policies change. This is setting up for a repeat of 2008 on real estate, these financial wiz kids have learned nothing.
As an investment, Gold, Silver and copper have all sucked, and mostly always have. As a store of value, not so much.
I view this as a sale. Lower prices for the same commodity. What a deal.
Back in 1980 the same percentage drop would have been about 5 points and met with a ho-hum.
I also believe that all markets...stocks, money supply, interest rates, commodities, metals, are rigged. Thus, the question is why are metals down? Part of me wonders if the elite aren't creating a buying opportunity for themselves to buy up metals cheaply because the ptb fear they might lose control of their bogus global economy.
Mygosh, I've become cynical.
Or realistic...
It all must be highly regional, they’re actually building a fair number of 3000 sq ft + houses priced over $600K nearby. I honestly didn’t expect to see that ever again. Very few entry-level or mid-market houses being built so existing is moving better than before 2008, price has recovered to 2008 levels. This is a manufacturing region, we had no bubble to speak of so much less volatility. Generally moribund since the early 2000’s due to NAFTA, CAFTA, etc. but onshoring, the return of manufacturing production to the US, has really buoyed us. Dollar strength could put a major dent in that, as could a major increase in the price of natural gas. Cheap natural gas due to domestic tracking has been a major factor in that on shoring.
I honestly expect to see the stock market break 20,000 psychological barrier then bust not long after. Ego, QE play money, hedge funds pushing for returns so they’ll keep piling on before it implodes once again.
Hope I’m wrong about the market but that’s what it looks like to me.
>> As an investment, Gold, Silver and copper have all sucked... aa store of value, not so much.
I don’t disagree, but there are many other stores of value besides metals.
Land, for one. “Things”, in general. And owning part of a company that actually makes stuff — i.e. equities in the RIGHT companies — is yet another store of value.
And guns and ammo. :-)
“The Scotch Whisky Association published its global figure for the first half of this year, and consumption is way down in China.
Exports to Singapore and China are down 46% according to the organisation. They declined 19.2% in the second half of 2013...”
http://www.businessinsider.com.au/chinas-scotch-indicator-is-signaling-disaster-2014-9
DOOMED!
You know it's little bit off point I suppose, but my wife and I celebrated our 29th wedding anniversary yesterday, and the day we were married, her gentleman cousin from Kentucky gave us a bottle of Maker's Mark that we have taken a nip from each year to celebrate. I'm told MM brews for 6 years before bottling, so that "quite-potent-by-this-time" stuff got started 35 years ago ....
And the bottle is only 1/2 gone!
FReegards!
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