Posted on 02/04/2024 6:32:23 PM PST by davikkm
In the ever-evolving landscape of financial markets, a red flag is waving high as market concentration risk reaches an unprecedented peak. The Top 10 stocks in the Russell 1000 now hold a staggering 31.3% of the index, marking a historic high and raising questions about the sustainability of the current market euphoria.
The earnings gap between Mega Cap Tech Stocks and Small Caps has widened to an all-time high, creating a stark dichotomy in the performance of different segments of the market. As history unfolds, it’s vital to pay heed to the lessons of the past, where the most significant financial gains and losses often materialize during the euphoric phase.
(Excerpt) Read more at citizenwatchreport.com ...
I think we’ve already had about 13 crashes in the last 6 months according to this guy.
Mass profit taking is coming, get out while you can,
(Mass profit taking is coming)
That’s what I would expect
A good deal of money now in the market, and entering the market comes from 401(k) accounts. Layoffs have already started and I think they will get much worse. People lose jobs, they stop the flow of 401(k) money into the market. And maybe they start pulling money out because they need to survive the emergency. That will drive things down real quick.
Commercial real estate is going to tumble this year no matter what.
Government and business loans need to be refinanced and the rates are a lot higher than they used to be.
I think this ends horribly.
On the chart it looks like a long-term top forming, but the top rarely comes with warnings.
There may be layoffs, but the number of people with jobs increases every month.
You see layoffs of 20,000 workers at one company, and you think that’s big. But there are 165 million jobs. Moreover, every month, there are 5 million job changes - somebody quits or retires, somebody else takes the job, old jobs are eliminated, new jobs are created, and new workers enter the workforce. It’s huge and very dynamic - the equivalent of the entire workforce turns over every three years.
10 stocks is 30%. If each is 3% and one goes belly up my portfolio is down 3%. If I have 60/40 allocation then I’m down 1.8. If one of the other 990 stocks rises quickly to fill the gap, I might not have any loss.
Scare tactics sells magazines
US markets are the tallest midgets around. Where else are you gonna throw your money? The world invests in our markets.
Hong Kong is at the same level as 1997, China at 2017 levels.
Doomers will doom, and can be right in the end. But the market continues higher. Extreme low volatility is algo buy opportunities everyday. There will always be dips, ebbs and flows.
+1
You can’t fix stupid.
Mah Politics over my Investment.
Mass profit taking is coming get out while you can.
The question is get out and go where?
If you look at the world, the Middle East is about to explode, China has a real estate crisis and possible war with Taiwan, with repression in Hong Kong. There is war with Ukraine and Russia. You have several Central and South American countries with huge economic and political problems.
If you are a rich person, who lives outside of the USA, where are you going to put your money? In Argentine peso backed bonds where inflation is in the triple digits? In Bitcoins?
Let’s say you live in the USA and have retirement savings mostly in the S&P500? Do you pull your money out and park it in a back savings account? A certificate of deposit that is not FDIC insured? Do you put it in a corporate bond fund?
Even if the fundamentals say that the US stock market should crash, what about all those foreign investors buying in, because the US economy is so much better than most of the other countries in the world? Won’t they keep the market prices high as they buy and buy and buy?
The US stock market is way over priced based on fundamentals. The US economy based on the horrible federal debt is going to have a day of reckoning. At some point the money now in the stock market will find something else.
Investments in gold and silver are in things that you can’t eat. They are in things that only have value if other people want them.
Invest in toilet paper. It’s always needed. At least in the US.
Food, Firearms, ammo, reload components, lead, copper and good whiskey (I don’t drink).
Smile.
If rich enough, I’d buy as much farm land as I could and the means, equipment, materials etc to start my own private self sustaining economy. At least would have food. Look what the Gates’s, Zuckers, etc of the country are doing. 2024 could become the second 1929.
Invest in stock. Actual stock. Beef cattle. And the land that sustains them. Everybody likes to eat.
I’m only a casual investor. While agree with most of what you say, I don’t get the last sentence. You can’t eat stocks, bonds, bit coin, etc, either. If nothing else, gold and silver are essential metals for manufacturing, currency (or coinage) and upscale jewelry. Short of the apocalypse, they will have a value beyond people simply wanting them. Unless we go back to living in caves, we’re going to need them. What am I missing?
Harris Ranch stock?
I once read an article that claimed to have studied market reporting in the media. It was always characterized as wonderful in the months before a Presidential election when the President was a Democrat; and was always reported negatively if the incumbent was a Republican.
Many of us have seen the terms "overwhelming majority" or "slim margin" both applied to 55% or so, depending on which party the media thinks would benefit.
Personally, I would think that ammunition, firearms investments and Prepper freeze dried food would be more valuable than gold and silver. Although firearms might be confiscated.
After reading what people really needed in Bosnia during its civil war, I think that investments in batteries and methods of making alcoholic beverages would also be better investments than gold and silver.
If someone has marketable skills, like plumbing, appliance repair, carpentry, landscaping, then I think that investments in tools and machinery, plus some bulk supplies would be the best possible investment.
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