Posted on 01/21/2022 5:11:10 PM PST by BenLurkin
Stocks are off to a tough start this year. The tech-heavy Nasdaq is already in a correction, a more than 10% drop.
Jeremy Grantham, co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO) said in a report called "Let the Wild Rumpus Begin" that stocks are now in the midst of a "superbubble," that it won't end well.
He noted that US stocks have experienced two such "superbubbles" before: 1929, a market fall that led to the Great Depression, and again in 2000, when the dot-com bubble burst. He also said the US housing market was a "superbubble" in 2006 and that the 1989 Japanese stock and housing markets were both "superbubbles."
Grantham believes that the Federal Reserve's moves to cut rates to zero -- and then keep them there for nearly two years -- is a main cause for the market's current frothiness. The Fed is widely expected to begin raising rates at its March meeting. "One of the main reasons I deplore superbubbles -- and resent the Fed and other financial authorities for allowing and facilitating them -- is the under-recognized damage that bubbles cause as they deflate and mark down our wealth...To allow bubbles, let alone help them along, is simply bad economic policy..."
Other investing experts share some, but not all, of Grantham's concerns. Jordan Kahn, president and chief investment officer of ACM Funds...isn't as bearish as Grantham. Rather than an epic crash, he foresees a series of what he calls "bubble-ettes," mini manias in corners of the market such as crytpocurrencies and speculative, unprofitable tech stocks.
"There has been a lot of blind faith," Kahn said. "There are areas where there has been a lot of speculation and there will be pain there."
(Excerpt) Read more at cnn.com ...
Seems to depend on how soon BiXiden can kill the economy.
Who knows? The bottom line is that the market is always volatile when you have the kind of unease and uncertainty that we have now. Just the comment by Biden that Putin will probably invade the Ukraine is enough to scare the market and investors. And the is just scratching the surface of what we are dealing with.
the = this
So now that the covid panic is wearing thin, they want to generate a panic in the stock market. This could easily turn into a self fulfilling prophecy. I got out of the market when Trump left office and had been kicking myself since. But as of today, the NASDAQ is basically flat from this time last year. I’m feeling better about my decision now. I hope no good American is hurt by this down turn.
Okay,
What Now?
Precious Metals agree. BOOM!
Diversity in investing is your friend. :)
However, investing in bullets, beans, gasoline, sturdy boots and thick, warm socks goes a long way, too. ;)
I’m out after a bloodbath. You keep thinking they will prop it up so the commies don’t look so bad. Like they did with obama. but i think now there might be nothing left to prop up. You can’t tell 30% of your working population to take a hick over a medical procedure and expect the economy not to suffer big time.
What now? Hopefully buying opportunity.
Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.” He should know. ... The original quote is believed to be “Buy when there’s blood in the streets, even if the blood is your own.”
Mostly cash.. the market is just looking for any excuse to tank 20-30%..could go 50%.
I have some bitcoin and Gold..I really want to buy more Gold but the market is so manipulated. It is only exceeded by bitcoin in manipulation.
Non-ethanol
Well, duh!
The time to buy gold was years ago.
I lost all of mine when we buried it 😂
I was a little worried about the markets until I saw that CNN was predicting gloom & doom.
I feel much better now.
All of what you said … plus the trigger event is usually something out of the blue and unexpected. Corrections and crashes can happen at any time. No one can time these things. That’s why I am a long term investor.
With NESARA/GESARA on the near horizon, I’d shed the BTC and continue to stack. Less on the Au, and more on the Ag.
Doesn’t a “hedge fund manager” profit when markets collapse?
I like bear traps and chicken wire.
Show me a market that likes rising interest rates...
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