Posted on 02/14/2013 11:52:57 AM PST by blam
FELIX ZULAUF: If The Stock Market Doesn't Correct Soon, Then We Could Repeat 1987
Sam Ro
February 14, 2013
GoldMoney Foundation via YouTube
One of the most striking aspects of the current bull run in the U.S. stock market is the lack of a correction (e.g. 5 percent sell-off) in months.
As stocks close in on new all-time highs, even the most bullish stock market bulls are worried about this.
Swiss hedge fund manager Felix Zulauf is particularly concerned, and he warns if we don't get some sort of sell-off soon, we could see a crash.
He spoke with King World News' Eric King:
...It’s a top building process that we are in. If the markets do not correct as I expect some time in spring, if the markets would continue to go up, and not be confirmed by internal technicals, then it gets very, very dangerous.
Then we would resemble much more a market situation that has some similarities to 1987 ... I’m just saying we are in dangerous territory, and people should be aware of that and take precautionary steps.”
Zulauf also talks about interest rates and gold.
(Excerpt) Read more at businessinsider.com ...
One starts to get the feeling that the market value of stocks doesn’t mean a thing. Why would people sell if the value is really there? Just to appease the bubble worry-warts?
the stocks went up because, mostly, the banks figure stocks (especially with their instant liquidity) are the best place to invest or park most of the billions of fake newly-printed dineros the fed is stuffing into the banks...
banks know stocks are risky and can go down, and also that msot stocks are wildly overvalued due to all the bank buying already into the market...............but.... if you were a banker, would you dare risking large amounts of capital into mortgages now that the Obama administration and Congress have so thoroughly screwed up that marketplace.....answer: NO.......!.....and you can’t put the money into student loans because Obama unilaterally nationalized that sector of the economy............and you wouldn’t even dream of making most business loans in this worsening Obama Great Recession what with more and more business bankruptcies on the horizon. So, you put the excess money into stocks ... watch carefully ... hit the SELL button when they get into danger... hoping to be able to bail out without too much damage, maybe a part of the captured profits if you are nimble and lucky.
or something like that.
We can thank our politicians for most of these troubles. With some occasional exceptions, the more the politicians try to screw around with (or just screw) business and the economy, the greater the investment and lending risks grow.... and the worse things get. There’s no rocket science about most of this, it is obvious (and therefore, probably intended...)
I’m out so no chance of any drop.
I remember 1987 very well. I had cash on the sidelines.
When the market tanked, I went all in.
Made out well.
It depends on what stocks you have.
Are oil majors, trading at 7 or 8 times earnings and paying a 3.5% dividend, going to plummet? Probably not. Same thing with drug companies, utilities, and tobacco. The dividends will put a bottom under any decline, because people are looking for income and will buy on a pullback.
This reminded me of when I was at Ford. Red Poling who was president at the time sold 57000 shares of Ford at $101./share on October 17th and on the 19th the market went south. I don’t think he caused it but I’m still looking for his broker.
That’s a good reminder for me. I have my stocks “tuned” to where I am making 1% per day steady but should probably be ready to shift here pretty soon.
If buy low and sell high is the proper strategy, then why do most folks do exactly the opposite?
Apparently, Zulauf doesn't follow stocks that much. The current "bull run", as he describes it, is the manipulation of the market by the 4 QE's which have devalued the dollar. That is why the DOW is at 14,000.
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