Did They Ring The Bell Today on Wall Street?

[planosteve]

The DJ dropped 264 points today! But, if they didn't ring the bell it's ok. They always ring a bell at the top of the market so everybody can get out before the bear market gets going and the depression starts

[GFB]

The overall market is presently 2% off it's recent highs.

[planosteve]

The overall market is presently 2% off it's recent highs.

Not to worry. Grandma is here to help.

Fed-Head-688x450.jpg (83.13 KiB) Viewed 1301 times

[GFB]

Not only am I not worried, I am hoping that this correction takes us farther than recent ones.

I've had some dry powder for a while now..and the most significant correction of 2 or 3 months ago was a paltry 4%.

[planosteve]

Not only am I not worried, I am hoping that this correction takes us farther than recent ones.

I've had some dry powder for a while now..and the most significant correction of 2 or 3 months ago was a paltry 4%.

Figure you can catch the falling knife? What's the magic number when you start buying?

[GFB]

Not only am I not worried, I am hoping that this correction takes us farther than recent ones.

I've had some dry powder for a while now..and the most significant correction of 2 or 3 months ago was a paltry 4%.

Figure you can catch the falling knife? What's the magic number when you start buying?

For long term investors.. the number is not all that meaningful.

[planosteve]

For long term investors.. the number is not all that meaningful.

So, you don't know "now" how far the market has to fall before it becomes a good value, but you will know at the time? You "long term investors" must figure somebody is going to ring a bell at the bottom too.

[John in Plano]

steve

when, month and year, did you go to all cash ?

or is it all gold n silver ?

[GFB]

For long term investors.. the number is not all that meaningful.

So, you don't know "now" how far the market has to fall before it becomes a good value, but you will know at the time? You "long term investors" must figure somebody is going to ring a bell at the bottom too.

For someone with a long time horizon..the stock market is always s a good value.

[GFB]

steve

when, month and year, did you go to all cash ?

or is it all gold n silver ?

The irony for a gold "investor" is..the longer the time horizon ?

Well..let's just say..the more potential losses, especially when you factor in..NOT being in other investments.

[planosteve]

After 6 years of the economy failing to achieve "escape velocity", the FED is about out of runway. The only signs of a "recovery" are the real estate and stock markets. That's because most of the money created to "stimulate" the economy went into speculation in stocks and real estate. That's why they are called bubbles. When they pop, look out below!

Maybe you could depend on the FED to tell you. They watch the markets like a hawk. For instance back on June 9, 2008, Bernanke said "The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so."

[John in Plano]

crickets

steve

are you in the market ?

yes or no


should be a simple reply..unless it goes against the lastest rant

[planosteve]

steve

when, month and year, did you go to all cash ?

or is it all gold n silver ?

These days I'm pretty heavy into cotton shorts.

[planosteve]

For long term investors.. the number is not all that meaningful.

So, you don't know "now" how far the market has to fall before it becomes a good value, but you will know at the time? You "long term investors" must figure somebody is going to ring a bell at the bottom too.

For someone with a long time horizon..the stock market is always s a good value.

Long horizons always become short ones. Only question is when. Usually, after a visit to a doctor or getting fired.

[GFB]

After 6 years of the economy failing to achieve "escape velocity", the FED is about out of runway.

Couldn't be more wrong on that one, Steve.

The Fed has all but stopped it's buying of securities.

As of October, they will have stooped completely.

They have all the runway in the world ahead of them in terms of economic stimulus..they are voluntarily stopping that process.

In short, they are now faced with the reverse problem.

When to start RAISING rates, which puts the Fed in the position of potentially stalling growth..and possibly bringing on another recession.

[planosteve]

Whether you print money and spend it on bonds or anything else, you are creating inflation. Once the economy is hooked on inflation you will cause the economy to tank whenever you stop or even slow down, whether you do it slowly or all at once. It's like a drug addict, you either quit cold turkey or you taper off. If the taper tanks the economy you will see QE4 or some other name that Grandma comes up with to blow it back up.

[GFB]

..and the already known brisk economic growth of the 2nd quarter..has been revised UPWARD..to a MORE brisk 4.6%..this ups the ante for the Fed.

[planosteve]

..and the already known brisk economic growth of the 2nd quarter..has been revised UPWARD..to a MORE brisk 4.6%..this ups the ante for the Fed.

Real income is stagnant and has been for a long time. Inflation, thanks to the FED, continues unabated, but not admitted. Everybody knows the fix is in on the CPI. Which spells economic disaster down the road. Only question is when. And when it does you can be sure that Grandma will be a deer caught in the headlight, just like Bernanke was in 2008.

[GFB]

Whether you print money and spend it on bonds or anything else, you are creating inflation. Once the economy is hooked on inflation you will cause the economy to tank whenever you stop or even slow down, whether you do it slowly or all at once. It's like a drug addict, you either quit cold turkey or you taper off. If the taper tanks the economy you will see QE4 or some other name that Grandma comes up with to blow it back up.

So, why has economic growth accelerated during the time that the Fed was tapering?

[GFB]

To answer my own question..the statement must be turned around.


The Fed started tapering because the economy grew!