With the chart that Ron Paul posted in this thread it looks like we have a lot of potential to rocket up...
still the last time we did it yanked the slats out of everyone's ability to earn a living.
I think we are in tough times without any deflation.
Please allow me to give my thoughts on what's going on...
The government, with the assistance of the Fed, is trying to get people to retire. They are pumping up the stock market (where the people's retirement funds exist) in order to get those nearing retirement to make their calculations and get out. They want to make room for all the unemployed. They are using Obamacare to scare employers into cutting back hours (less than 30 hours a week and you can call them part-time and won't have to pay for them). They figure it'll get more people working again and will generate economic growth. They are using their media to generate stories about how stable things are becoming to give the elderly confidence about the government taking care of them if things should go bad.
This is all about a lack of understanding about how wealth is created. If I were near retirement age, I'd be scared as hell right now. They keep pumping up the bubble in an effort to prove their logical fallacy. How bad are you going to feel for the guy who retires based on their lies and has to try to go back to work when their charade is blown? Personally, I know lots of people in my industry in this boat. It's not their fault they don't understand, not everyone pays attention like we do.
But they will. Soon, all those people who didn't pay attention to how their government was playing them are going to find themselves in very hard times. (They will understand their own suffering, but they will have no idea how it happened to them.)
"And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat
"It is difficult to free fools from the chains they revere." - Voltaire
don't jump the shark
Even an analyst on CNBC today said that it's nothing more than the Fed pumping money into the market.
"Power tends to corrupt, and absolute power corrupts absolutely." - Lord Acton
"Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Benjamin Franklin
"Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
"Government is not the solution to our problem; government is the problem." - Ronald Reagan
"The only thing we have to fear is fear itself, and we must reject those who spread fear." - B4L update of FDR
"The Ministry of Truth can turn on a dime, and the fury of the ignorant masses can be redirected at will." - B4L
"Marxists become Fascists the minute they become rich, yet they retain the Marxist rhetoric." - B4L
"Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
"Thing is, the world is full of a**holes." - ACPTulsa
I had this written and was working all week getting it published. I'm still having trouble with the website dropping the Robert Sahr chart. All day I was seeing article after article of people that feel the same way as I do. I sort of got scooped.
I thought I was alone at the beginning of the week.
Bob Dylan - Times They are a-Changin
Near the end of the day, CNBC had the following "Breaking News Alert" that went something like this:
"Stocks rally on the as disappointing jobs report fuels speculation for more Fed buying."
Danger, Will Robinson!!! The same thing happened with Wednesdays GDP report. Stocks rallied after reporting negative gdp! Something is not right here. Looking from the 2000/2008 tops, My guess is that we have at most 9 months until some sort of major correction.
General advice here is to just stay frosty and wait on making investments? I've been waiting for some kind of major correction and just not bothering to invest in anything so I don't get COMPLETELY screwed. We all know its coming. I just don't know if it will be 9 months or 9 years.
"Freedom, then Pizza!" - Oklahoma State GOP Convention 5/11/2012
That 's the way I see the market as a whole move on average. That doesn't mean that someone that has a feel for such things can't do better than average.
Lately I've been driving past the Tesla car plant and seeing it really pick up with cars in the parking lot. It looks like it is hopping.
I've also heard they are still borrowing money to get going. That used to be the real reason for stocks. Someone had an idea but didn't have all of the money to get started so people would pool enough funds to get started and then take shares in the profits. I think back in those days the market remained flat but the dividends rolled in.
Now we seem to play it thinking because it is going up were making a gain. On average you break even. Then the capital gains taxes take you to the cleaners on the illusion of a gain.
Still now may be a time to get down to the old basics with a Tesla purchase.
Then again we have people that have been living in such a way as they can never spend enough to feel secure. Even if you don't believe in a god many of the rules in the Bible still apply. Some of it is kind of a psychology book on the rules of messing up. ??? We should have never gotten out of hand the way we have.
It is tough to tell what the future will bring.
Or is it?