Dow Jumps up over 18,000

[planosteve]

It looks like this bubble will end with a classic blow off at the end. I wonder if Moriff at Money Matters will tell his flock to sell now. He had predicted a top of 18,000. So, will he stick to it and recommend they hold or buy more? Or sell? Will be interesting to see what his take is.

http://finance.yahoo.com/news/futures-little-changed-latest-record-124244133.html

[GFB]

I guess for those that have sat out one of the greatest bull runs in history..calling it a "bubble" probably feels good.

[GFB]

..and if Ken Moraif is someone you like to listen to, I notice he does NOT refer to this bull run as..a "bubble."

[planosteve]

..and if Ken Moraif is someone you like to listen to, I notice he does NOT refer to this bull run as..a "bubble."

Moraif is an investment guy like Brinker. And like Brinker he knows very little about economic history.

[planosteve]

I guess for those that have sat out one of the greatest bull runs in history..calling it a "bubble" probably feels good.

I own stocks in mutual funds. But, not with money I can't afford to lose. I would never play the stock market with money I expect to need for living expenses.

[GFB]

I guess for those that have sat out one of the greatest bull runs in history..calling it a "bubble" probably feels good.

I own stocks in mutual funds. But, not with money I can't afford to lose. I would never play the stock market with money I expect to need for living expenses.

Last week you said you have nothing in the stock market.

[Red Oak]

Mr. Opposite says a lot of things

If the Economy were strong and robust, the Fed wouldn't have to hold the interest rate to near zero.

[GFB]

Mr. Opposite says a lot of things

If the Economy were strong and robust, the Fed wouldn't have to hold the interest rate to near zero.

The toughest thing the Fed ever has to do, is to "time" the raising of interest rates.

Too soon can kill the heck out of a recovery.

Too late can foster runaway inflation.

And although the 3rd quarter GDP came in at 5%..one quarter does not make an economy.

That's why no one knows, including the Fed itself..when interest rates will have to rise..and how much.

[planosteve]

There is no good time to raise interest rates.
The FED will never allow interest rates to rise. Never. If they did not only would the stock market crash,
the interest on the national debt would skyrocket and the economy would collapse. And that is why
we are so screwed.

[GFB]

There is no good time to raise interest rates.
The FED will never allow interest rates to rise. Never. If they did not only would the stock market crash,
the interest on the national debt would skyrocket and the economy would collapse. And that is why
we are so screwed.

If I was like somebody else we know, I would bookmark this page to show you in the future how wrong you are about that.

[planosteve]

There is no good time to raise interest rates.
The FED will never allow interest rates to rise. Never. If they did not only would the stock market crash,
the interest on the national debt would skyrocket and the economy would collapse. And that is why
we are so screwed.

If I was like somebody else we know, I would bookmark this page to show you in the future how wrong you are about that.

Here is how Ron Paul puts it:
While the real economy continues to sputter, financial markets reach record highs, thanks in no small part to the Fed’s easy money policies. After six years of zero interest rates, Wall Street has become addicted to easy money. Even the slightest mention of tightening monetary policy, and Wall Street reacts like a heroin addict forced to sober up cold turkey.

[GFB]

At least he's not silly enough to say rates will never rise.

[planosteve]

At least he's not silly enough to say rates will never rise.

Oh, they may try a tiny increase in the shortest term rates. But, they will set off a stampede out of the market with any serious attempt to increase rates.

[GFB]

At least he's not silly enough to say rates will never rise.

Oh, they may try a tiny increase in the shortest term rates. But, they will set off a stampede out of the market with any serious attempt to increase rates.

You changed your mind already?

[planosteve]

At least he's not silly enough to say rates will never rise.

Oh, they may try a tiny increase in the shortest term rates. But, they will set off a stampede out of the market with any serious attempt to increase rates.

You changed your mind already?

No, just acknowledging there is no way to predict exactly what some rogue element of the govt. is going to do. Especially one as irrational as the FED.

[GFB]

"The FED will never allow interest rates to rise. Never."

[planosteve]

"The FED will never allow interest rates to rise. Never."

But it they do it will be miniscule and temporary.
This just in from Phoenix Capital Advisory Service:

Why does this matter? Because the last 20 years has shown us that the Fed immediately cuts rates and turns on the printing press at the first sign of trouble. Given the fragile state of the global economy and financial markets, the likelihood of the Fed raising rates in a significant or unexpected way is next to none.
Indeed, Ben Bernanke told a group of hedge fund insiders that rates will likely not be normalized in his lifetime (he’s currently 61, so he’s talking 20-30 years).

[GFB]

"The FED will never allow interest rates to rise. Never."

But it they do it will be miniscule and temporary.
This just in from Phoenix Capital Advisory Service:

Why does this matter? Because the last 20 years has shown us that the Fed immediately cuts rates and turns on the printing press at the first sign of trouble. Given the fragile state of the global economy and financial markets, the likelihood of the Fed raising rates in a significant or unexpected way is next to none.
Indeed, Ben Bernanke told a group of hedge fund insiders that rates will likely not be normalized in his lifetime (he’s currently 61, so he’s talking 20-30 years).

The Fed always raises rates in small increments..most likely 25 basis points at a time.