Posted on 08/27/2021 7:33:13 AM PDT by millenial4freedom
Well, here we are - another day the market is rallying hard after Jerome Powell provides reassurance that the Fed will continue to come in and save the day.
What a fool I am for occasionally buying puts on SPY on the days he speaks (well, maybe for buying puts on SPY at any time!). At some point, there has to be some type of correction, right? There are too many uncertainties and mishaps that have occurred and can occur under this administration. I'm guessing a long-term hedge might be best.
And Powell did say the Fed will taper bond purchases some by the end of the year. I know interest rates get all the headlines, but the "not QE" the Fed does might be more important.
Prep, Stock up. Rough ride ahead.
When the crash comes it will be world-wide and totally crazy—but there is no way an outsider can figure out when it will happen.
If you are gonna buy puts, you better have inside information—think like Gordon Gekko in “Wall Street”. :-)
When the crash comes it will be world-wide and totally crazy—but there is no way an outsider can figure out when it will happen.
If you are gonna buy puts, you better have inside information—think like Gordon Gekko in “Wall Street”. :-)
As I see it, there will be no meaningful stock market correction until interest rates rise enough to make bonds attractive. Until then, the stock market is the only game in town.
Disclaimer: Warren Buffett has never called me for financial advice. So what do I know?
There are printing money at a neck break pace, then lending it banks at 0% - all that money has to go somewhere, and it is going to assets which is creating high inflation on everything including stocks
Invest in lead.
Fed chairman Powell out in Jackson Hole pumping it today. The inflation is only a temporary thing.
You asking ?
Go here it ay serve you better ?
https://community.morningstar.com/s/topic/0TO3o000001yV0eGAE/stocks
(1) Never bet against the USA
(2) Never count on a crash coming soon.
(3) Put on your big boy pants and be prepared for a loss when you bet on news moving the market.
(4) Invest for the long term -- professional short term traders have equipment and real-time data feeds that beat whatever you have.
I don’t think it’s the only game in town. Real Estate is also exploding as big money is grabbing every tangible asset it can locate.
i find it hard to invest for the long term right now. I’m perfectly fine missing this run.
The wrinkle that few have noticed is: the US dollar as a reserve currency is based in part on the strength of the US military - something now called into question after yesterday
“(1) Never bet against the USA”
I got into ETN a few years back when they ‘moved’ out of Texas to Ireland.
Good Company. Good dividends. 350% gain in six years.
The basics of the economy for the last 30 years is that various forces have been pushing wages lower (automation, globalization)
That lowers inflation, allowing the fed gov to print money, that money flows into stocks and real estate.
That’s pretty much the same way I’ve been playing it. People all around me keep telling me to invest so I don’t miss out on the gains. Phooey. I’ve had a good past couple of years and now I’m scared to death of “the big one”. I remember how painful the dotcom bust was and of course now even more is at risk for me. Nope, I’ll sit mostly on the sidelines for awhile. Sure I’ll miss some gains, but I’ll be able to sleep at night know I’m not at risk of losing betwen 20% and 50%.
I believe that we need to understand that the ginormous financial stimulus by the federal government was really a wealth transfer to the investor class and that interest rates will no longer be set in the marketplace but by fiat, such as done under Communism. This manipulated bubble in the stock market may be to draw funds from bond and real estate investors and then eventually wipe them out by artificially crashing the market? I would be looking at stocks of companies that are truly producing a product that is not subsidized or propped up by regulation, or both, as they may withstand any crash. As they kill off the baby boomer class there has to eventually be a come down in real estate. Bond rates will be set by fiat. Or conversely, invest in Blackrock, which controls the entire financial market now, but that is like supping with the devil. It might be better to put some money in a credit union where the local economy, not the globaiist economy, can generate a decent return.
The Stock Market has no basis in logic or reason. It is all a manipulated crap shoot, like a pair of dice in a street hustler’s hand...........................
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