Posted on 09/04/2014 7:47:56 AM PDT by SeekAndFind
"The stock market is at an all-time, but economic activity is not at an all-time," explains billionaire investor Sam Zell to CNBC on Thursday morning, adding that, "every company that's missed has missed on the revenue side, which is a reflection that there's a demand issue; and when you got a demand issue it's hard to imagine the stock market at an all-time high." Zell said he was being very cautious adding to stocks and cutting some positions because "I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking." Zell also discussed his view on Obama's Fed encouraging disparity and on tax inversions, but concludes, rather ominously, "this is the first time I ever remember where having cash isn't such a terrible thing." Zell's calls should not be shocking following George Soros. Stan Druckenmiller, and Carl Icahn's warnings that there is trouble ahead.
Billionaire 1: Sam Zell
On Stocks and reality...
"People have no place else to put their money, and the stock market is getting more than its share. It's very likely that something has to give here."
"I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking," he said. "If there's a change in confidence or some international event that changes the dynamics, people could in effect take a different position with reference to the market."
(Excerpt) Read more at businessinsider.com ...
It is going to. They’ll probably keep it propped up until after the elections. They don’t want to hurt Hussein Obama’s feelings.
You can’t predict the movements of the market. Yes, stock prices are high and will go down some day, but no one can say when.
However, the end of the taper in October, if that does happen, might provide some impetus. You would think interest rates might start to rise a little.
This looks like an odd sort of bubble which has occurred simply because there's no other place for money to go right now where it is welcome and has things to do other than the market.
Everywhere else, it's either being locked away for safety and a better day or being sucked up by GuvCo junkies like cocaine through a crisp, new rolled up $100 dollar bill they just printed.
As long as the FED keeps printing money it has to go somewhere and the stock market is the only real answer.
The market isn’t high. Due to inflation the numbers are higher, leading some ignorant individuals to think that the market is soaring.
They’ll all try to keep it propped up for as long as they possibly can, inflating the balloon as much as they can...
but they ultimately aren’t in control of it.
It goes down, disastrously, on Sept 13, 2015.
Or in 7 days.
Been reading this crap for decades.
So it is written; so let it be done.
Interest rates rising, now that the US and Japan have borrowed against the future beyond rationality, will be a VERY bad thing for everyone. Interest rates have been kept artificially low for several years. If they rise even just 2 percentage points, Japan starts failing fast... and even we are not big enough to rescue them, even if we weren't already in debt up to our eyeballs. China might try, in a non-military take-over attempt, but they also can't do it... and Japan likely would rather collapse than be owned by China.
So some week when the market drops 20-30% the printed money goes poof?
Yes. You turn your paper dollars into paper stocks.
Then others tell you how much your paper stock is worth.
It goes down, disastrously, on Sept 13, 2015.
I believe it will before then.
Bkmk
What I find interesting is that I often wonder if their was some bad blood or rivalry between ZH and BI ( I have my reasons ), and here, BI post a ZH article. Hmmmm... That’s got my attention and all the other web-news organizations that have ran this as well, not to mention Beck was all over it today....
No smart investor has had money in the stock market since Obama entered office. Even wiser because of the blatant hanky panky supporting the stock indices through crass manipulation.
So who is supporting the market other than the manipulators?
“Investors are pouring money into Vanguard Group, the epitome of the hands-off approach to investing, flocking to funds that track market indexes and aren’t run by stock pickers or star managers. The inflow has pushed the mutual-fund giant to almost $3 trillion in assets under management for the first time.”
“Investors poured a net $336 billion into passively managed stock and bond funds in 2013. So far this year through July, investors put a net $177 billion into those passive funds, compared with $74 billion in actively managed funds.”
“Pacific Investment Management Co. (Pimco)’s Total Return bond fund now manages $223 billion, compared with $299.4 billion for Vanguard’s Total Stock Market Index fund.”
“BlackRock, the world’s largest asset manager, has about $4.6 trillion in assets under management. State Street Corporation has about $2.35 trillion under management.”
So, the big question is what could compel these corporations to massively sell off stocks? Unless the market manipulators decide to crash the indexes, this seems to be the only way to have a large correction.
What confuses me is how some of the DOW 30 have managed to rake in record profits in such a bad economy?
Yeah, if the market is doing so well, then why isn’t real estate participating? If its due to inflation again why isn’t real estate, gold, or oil taking part?
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