Posted on 07/17/2014 6:46:14 AM PDT by SeekAndFind
Bears may be making the most noise on Wall Street, but bulls expect to see stocks stay on a record-setting course this summer, fueled in part by a surge in merger activity.
Despite calls for a big correction, the S&P 500 and Dow have persisted in making gains, with major indices up more than a percent this month so far. The Dow closed at 17,138, a new high, Wednesday. The S&P 500 trended higher to 1,981, four points below its all-time high.
[SNIP]
Stocks could continue to benefit from low rates and easy Fed policy into next year, and the market should also be bolstered by steady earnings growth in an improving economy, analysts say. But some investors, like Stanley Druckenmiller and Carl Icahn, said they worry about the potential side effects of too much Fed easing. Both made comments on their concerns at the CNBC and Institutional Investor Delivering Alpha conference Wednesday.
But some analysts say the Fed's easy ways should keep stocks heading higher for now.
(Excerpt) Read more at cnbc.com ...
It makes sense that if you believe the dollar is becoming devalued.... holding on to them isn’t very bright. You have to own what will create more of them. Property, stocks, silver.... something. Just putting everything in cash is a method called “fearful investing”. Fear never wins anything.
I believe the dollar will more like monopoly money in the not too distant future.
May as well have something that we know will have value.
By hard assets. Rental property etc. Rent always goes up. Bonds (corporate or government) have to much risk. All you have is a bureaucrat’s word that he’ll give you your money back someday. With municipalities declaring bankruptcy who wants to own bonds? They pay almost nothing and now they’re not even safe? Gold and silver maybe. You can’t beat owning property. That’s just my humble opinion.
“The printing of more and more money is like cocaine to addicts.”
The main thing that has allowed America to live so far above its means for all these years has been the use of the dollar as a global reserve currency. Our military strength and influence has also helped here. Consider Saudi Arabia selling us oil for dollars in return for our protecting their royal family.
The fact that international transactions are settled in US dollars has effectively allowed us to export what would have been hyper-inflation by purchasing goods and resources with increasingly diluted currency.
Nothing (of this world anyway) lasts forever.
Nothing (of this world anyway) lasts forever.
So true.
Finance major here as well. Nothing looks like what I was taught. These are indeed different days. Like everything, there is a level of corruption and manipulation in the markets now. I’m still in, but just barely. Got skinned hard in the tech bust thinking maybe the old valuation rules don’t apply anymore. Won’t make that mistake again.
If the return on the CD is a couple of tenths of a percent, and inflation is at 3% ..... then the CD's are losing money at a pretty good clip.
That being said, I have CD's, too. But they're for short-term emergencies, not long term investments.
Got skinned hard in the tech bust thinking maybe the old valuation rules don’t apply anymore. Won’t make that mistake again.
I believe investors in companies like Tweeter and Facebook may learn of those rules in the not too distant future.
The image should say “Goldman Sachs” instead of Las Vegas.
In Las Vegas you have a chance to win some money....
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