Posted on 11/27/2013 7:28:07 AM PST by SeekAndFind
Well, this is it. As soon as the pundits start proclaiming “evertying is great”, the house of cards comes crashing down.
Look out below.
I’ve always advised people whose stock portfolios are soaring to put a downside protection on their stocks.
LEARN PUT A TRAILING STOP. The problem is people buy but never learn to sell.
Back in the 90s people were eager and confident. This time around folks are a little more savvy and cautious. They know that a market built on paper money printed to the tune of $85 Billion a month might not be secure. So, we are not seeing the helter skelter internet rumors fueling a buying fever like before. Most of the rise in value is probably coming from institutional buyers and not individual investors.
This time it’s different.
Any price above book value is speculation. PEs based upon projected future earnings are speculation. Today’s inflated PEs are darn right bubblicious.
As long as qe infinity is on, the stock market will rise. It’s almost as if it is a tire pump and the market is the tire. And most of the “air” it produces goes into that tire.
The problem is people buy but never learn to sell.
RE: That’s the problem I have with junk silver. :-)
Do you own Physical silver or an ETF like SLV?
I owned SLV when it was trading at $23. It reached a peak of $50 but I put a trailing stop when it reached $45 at 20% below the current trading price.
It sold automatically at $40.00. I still made a huge profit in a Silver market crash.
THAT is what people should be doing NOW with their stocks that are rising.
It is looking like the housing bubble, except here there is a promise of delivery of the value of the stock that is made of thin air compounded with poison gas foreign and domestic policies.
This stock market is propped by food stamps and by the inability to save. It is just companies betting into each other. Moreover they have to turn in a profit and loss and have to play the trade artifice compound interest by rolling the money in and out of lows and highs as fast as they can.
Yeah, that’s what a lot of folks are saying - don’t worry until they come out and proclaim that there’s nothing to worry about.
Like you can create 85 billion a month out of thin air, pump it into the stock market, and not have it be a “bubble”.
Bears repeating.
I don't trust anyone who knows what the future will bring.
I own physical silver that I keep within my reach. I’ve never actually sold a single coin. I only buy. If we don’t end up with SHTF in my lifetime, my kids can decide what to do with it.
They are? I thought it was one of the few safe stats.
One word— Bitcoin....
I well remember the late 80s when all the 28 yo MBAs declared that we had conquered recessions forever.
I was at a Mensa meeting not much before the crash that started the “Great Recession” where a financial advisor told me mutual funds are 100% safe and that people aren’t smart enough to trade on their own.
The fed hasn’t been pumping money since 2003. If you want to see bubble returns look at the returns since the fed began QE.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.