Yellen-The US Economy is Strong

[GFB]

All it takes is the "smell" of newly created FED money going into the system for speculators to start franticly buying stocks in anticipation of higher prices that the new money will cause. That's what "FED watching" is all about. The smart money gets in first, makes their bundle and gets out. So, it's kind of a Ponzi scheme that the FED springs on the market.

The smart money gets in and gets out?

Well then, can you explain why the Dow and S & P are at all time record highs this morning?

..and that's 3 months after the Fed stopped "pumping."

How do you know they have stopped pumping? They are always pumping. QE was just supplemental pumping. But, the FED is never audited, so there is no way to know what they actually do, only what they say,

Oh..of course..when you have no answer...time for another conspiracy.

[GFB]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

[planosteve]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

No, the smart money didn't stay. They were replaced with the stupid money.

[GFB]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

No, the smart money didn't stay. They were replaced with the stupid money.

Ok, let's keep tabs on how these really smart vs stupid people do in the weeks and months to come.

[planosteve]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

No, the smart money didn't stay. They were replaced with the stupid money.

Ok, let's keep tabs on how these really smart vs stupid people do in the weeks and months to come.

Here's what one of the smart people thinks:
http://finance.yahoo.com/news/robert-shillers-depressing-advice-investors-130622396.html

[planosteve]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

No, the smart money didn't stay. They were replaced with the stupid money.

Ok, let's keep tabs on how these really smart vs stupid people do in the weeks and months to come.

Here's what one of the really smart people thinks:
http://finance.yahoo.com/news/robert-shillers-depressing-advice-investors-130622396.html

[John in Plano]

The other pillar of his advice is a classic tenant of responsible investing, with a global twist.

"Diversify, because that helps reduce risk," Shiller said. "And you can diversify outside the United States. Some people would never invest in Europe-I think that's a mistake."

Shiller adds that emerging markets can also provide attractive values.

And indeed, valuations in much of the world are far lower than in the United States, given that investors are more optimistic about economic prospects in America than in nearly any other country.

But perhaps people shouldn't base their investing decisions quite so heavily on predictions.

"The future is always coming up with surprises for us, and the best way to insulate yourself from these surprises is to diversify," Shiller said.

[GFB]

Nothing original there.

[GFB]

Whether the Fed is pumping or not..it appears the smart money got in..stayed in..and added more during market weakness.

No, the smart money didn't stay. They were replaced with the stupid money.

Ok, let's keep tabs on how these really smart vs stupid people do in the weeks and months to come.

Well..our first marker shows the S&P up sharply..and making a new all time record closing high.

Score 1 big day for the stupid money.

[planosteve]

The stupidest money always thinks it's the smartest. That's how you can tell it's the stupidest.

[GFB]

The stupidest money always thinks it's the smartest. That's how you can tell it's the stupidest.

Now I'm getting confused.

Record highs in the Dow and S&P again..Dow, S&P and Nasdaq all up huge!

Guess we'll have to chalk up another win for the stupid people and their stupid money!

[planosteve]

The stupidest money always thinks it's the smartest. That's how you can tell it's the stupidest.

Now I'm getting confused.

Record highs in the Dow and S&P again..Dow, S&P and Nasdaq all up huge!

Guess we'll have to chalk up another win for the stupid people and their stupid money!

They haven't made a dime on an investment until they sell it. Stupid people count their chickens before they hatch.

[GFB]

The stupidest money always thinks it's the smartest. That's how you can tell it's the stupidest.

Now I'm getting confused.

Record highs in the Dow and S&P again..Dow, S&P and Nasdaq all up huge!

Guess we'll have to chalk up another win for the stupid people and their stupid money!

They haven't made a dime on an investment until they sell it. Stupid people count their chickens before they hatch.

Oh, so the smart people are invested in the stock market after all?

[GFB]

Oh, my!

Dow, S&P and Nasdaq all up huge today.

..and making more record highs!

What the heck happened?

[planosteve]

Oh, my!

Dow, S&P and Nasdaq all up huge today.

..and making more record highs!

What the heck happened?

What happened is the FED hasn't increased interest rates. And the reason is even a little bitty 25 basis point increase would tank the market because the "recovery" is a sham. So, the FED will keep pretending that there is a recovery and interest rates can be raised someday. But, someday will never come.

[GFB]

Oh, my!

Dow, S&P and Nasdaq all up huge today.

..and making more record highs!

What the heck happened?

What happened is the FED hasn't increased interest rates.

So, nothing happened?

..and what happened to the market ranking at the end of QE?

That was 5 months ago.

[GFB]

Oh, my!

Dow, S&P and Nasdaq all up huge today.

..and making more record highs!

What the heck happened?

So, the FED will keep pretending that there is a recovery and interest rates can be raised someday. But, someday will never come.

..and you've gone from saying the the stock market is strictly for speculation and not for investing..to now believing it's up, up and away forever simply because the Fed will never raise rates.

That makes you the bullish person in America.

(Yes, words mean things)

[planosteve]

By the way, not to be an alarmist, but the Chinese economy is teetering on the verge of total collapse. That is not going to be very good news for the stock market. They make all our stuff.

[GFB]

By the way, not to be an alarmist, but the Chinese economy is teetering on the verge of total collapse. That is not going to be very good news for the stock market.

..but you believe our's is as well..China or no China.

[planosteve]

By the way, not to be an alarmist, but the Chinese economy is teetering on the verge of total collapse. That is not going to be very good news for the stock market.

..but you believe our's is as well..China or no China.

It's sick with or without China. Our economy is not healthy when we have to depend on another country to produce most of our goods. Certainly not a communist country.